The past few years have been challenging for homebuyers, especially with higher home prices and mortgage rates. And if youâre trying to buy a home, itâs easy to worry you wonât be able to find something in your budget.
But hereâs what you need to know. The number of homes for sale has grown a whole lot lately and thatâs true for both existing (previously lived-in) and newly built homes. Hereâs a look at those two bright spots for buyers right now and why they may make it a bit easier to find the home youâre been looking for.
1. There Are 22% More Existing Homes for Sale
Data from Realtor.com says the number of existing homes for sale improved by an impressive 22% in 2024. And experts say your pool of options is expected to get even better this year. Forecasts show inventory is projected to grow another 11-15% by the end of this year (see graph below):
Hereâs why this is so good for your search. If you havenât seen a house with all the features you need, just know that, as the number of homes for sale grows, youâll have more options to choose from. That means a better chance of finding a home that checks all your boxes. As Ralph McLaughlin, Senior Economist at Realtor.com, says:
âIt could be a particularly good time to get out into the market . . . youâre going to have more choice. And thatâs not something that buyers have really had much over the past several years.â
2. There Are More Newly Built Homes on the Market
According to data from the Census and the National Association of Realtors (NAR), 31.1%, or roughly 1 in 3, homes on the market right now are newly built homes. Thatâs more than the norm (see charts below). But donât worry, thatâs not because builders are overdoing it â itâs just that theyâre trying to catch up after years of underbuilding.
And the best part is, since builders have been focusing on smaller homes with lower price points, you may actually find out new builds are less expensive than youâd expect. So, while a lot of people write off new construction because itâs easy to assume the costs are way higher, lately, that price gap isnât as big as youâd think. As CNET says:
âIf you live in an area where thereâs a lot of new construction happening . . . you might be able to purchase a new house for a price similar to or even less than a pre-owned one.â
If you havenât been able to find a home thatâs in your budget, itâs time to ask your agent about new builds. If you donât, you may have been cutting your pool of options by about a third.
Bottom Line
More choices could be the key to unlocking your homebuying goals in 2025. Reach out if you want to see whatâs available in and around our area.
What features are you looking for in your next home? Let me know and Iâll put together a list of homes youâd love.