If you've been watching the housing market over the past couple of years, you've likely noticed that sellers have held the upper hand. But with inventory on the rise, is that dynamic about to shift? Let’s break down what you need to know about where the market might be headed.

What Is a Balanced Market?

A balanced market typically has about a five-to-seven-month supply of homes available for sale. In this scenario, neither buyers nor sellers have a clear advantage. Home prices tend to stabilize, and there's a healthier selection of properties to choose from. After years of sellers having the upper hand, a more balanced market would be a welcome change, especially for those looking to buy. But are we truly on the path to such a market?

At the start of the year, the national housing inventory was at a three-month supply. Today, it's increased to four months. While that might not seem like a dramatic change, it’s a step closer to a balanced market—even though we’re not quite there yet. Importantly, this rise in inventory doesn't signal an oversupply that could lead to a market crash. Even with the recent growth, there's still not enough supply for that to happen.

The graph below, based on data from the National Association of Realtors (NAR), gives you a snapshot of inventory levels in the past compared to where they stand today.

What This Means for You and Your Move

So, what does this shift mean for you? Lawrence Yun, Chief Economist at NAR, offers some insight:

“Homes are staying on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national level.”

Here’s how these changes might affect your real estate journey:

• Homes Are Staying on the Market Longer: With more homes available, properties aren't selling as quickly. For buyers, this gives you more time to find the perfect home. For sellers, it’s crucial to price your home correctly to attract serious buyers. If you overprice, buyers may opt for better-priced alternatives.

• Sellers Are Receiving Fewer Offers: As a seller, you might need to be more flexible with price and terms to close the deal. For buyers, this could mean less competition and more choices.

• Fewer Buyers Are Waiving Inspections: With more negotiation power, buyers are less likely to skip inspections. For sellers, this means being prepared to negotiate and address any repair requests that may arise during the sale process.

How The McGuire Team Can Help

While these trends give a national overview, your local market can look quite different. That's why it's essential to lean on a local real estate expert. The McGuire Team is here to provide you with the latest market data and insights, so you can make informed decisions whether you're buying or selling.

The real estate market is constantly evolving, and staying informed is key. Understanding this shift toward a balanced market can give you a significant advantage. If you have questions or need expert advice tailored to your local area, don’t hesitate to reach out to The McGuire Team. We're here to help you navigate these changing market conditions with confidence.