Inventory is Up, but Buyers are Slow to Bite
Nationwide - You’d think more homes on the market would lead to a flurry of buying activity, right? Surprisingly, that’s not what we’re seeing. For the first time in years, housing inventory is actually up—but many buyers are still sitting on the sidelines. The usual spring surge of home sales just isn’t showing up the way it used to, and there are a few key reasons why.
First, even though mortgage rates dipped slightly in May, they're still hovering around 7%. For many would-be buyers, that rate is a deal breaker, especially when you add in today’s high home prices. Affordability is at its worst level since the early 1980s, and even with more listings available, people are hesitant to jump in. As a result, homes are sitting on the market longer, with median days on market rising year-over-year.
Interestingly, more sellers are finally coming back to the table. The number of newly listed homes has grown for three straight months, and April brought the highest number of new listings in nearly four years. That’s a major shift from the tight inventory we’ve been dealing with. It seems like homeowners who were once locked in by low interest rates are now finding reasons to move—whether it’s life changes or finally accepting the new normal.
But buyers? They’re cautious. The share of homes seeing price cuts has gone up, which tells you sellers are starting to adjust their expectations. Still, most aren’t slashing prices dramatically—just enough to stay competitive. And with today’s buyers taking their time, that’s often what it takes to get a deal moving.
In summary, I’d say we’re in a weird in-between phase. There’s more to choose from, and sellers are showing up again—but high borrowing costs and affordability fears are holding demand back. I believe we’ll need to see a more significant drop in rates before buyer confidence really kicks back in. Until then, it’s a buyer’s market in some ways—but only if those buyers can actually afford to play.
Source Inspiration: NAR.realtor