If you’re considering purchasing a home, you’re probably weighing your demands against current mortgage rates, house prices, schedule, and other factors to determine whether you want to enter the market. 

If this describes you, one crucial detail could influence your choice: there are currently more properties for sale than there were at this time last year. For the week ending November 18, there were 47.7% more homes for sale than there were at the same time in 2021, according to Calculated Risk. Additionally, having more options is what you need to feel comfortable moving forward with your home search.

So that you can better understand what’s going on in the market right now and what it implies for you, let’s take a look at where the additional housing supply is coming from. 

What led to this year’s increase in housing inventory? 

This year’s rise in housing supply is different from where you think it is. The primary reason the supply has increased is that houses remain on the market a little longer, as opposed to an influx of recent homeowners listing their homes for sale (known as new listings).

That’s the case because slower sales growth has been caused by the peak buyer demand moderated by rising mortgage rates and property prices. And as sales have slowed down, inventory has increased as a result. 

You still have a chance to benefit from the existing supply, even if total inventory growth may slow down this winter, owing to the usual seasonality of the housing market. 

What does this mean for buyers?

Whatever the cause, buyers will benefit from the increase in housing options. There are more homes for sale, giving you more options and possibly more time to consider them as you look for your next residence.

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