While each year has a similar, general cycle of more/less inventory in specific months, 2025 has definitely caught my attention in the number of options that Buyers have.
Should you be alarmed?
While there's no crystal ball here, I don't think there's enough evidence to be too concerned. To begin with, purchasing a home is not a short-term investment. So, you should look at the long-term performance of homeownership. Even with periods in time that drop or level off, over the long-term real estate has a 100% historical chance of going up. How long that may take is subjective and circumstantial.
Let me speak to the Buyers in the House:
Whether you're looking to purchase your first home, or you've done this before, it's unlikely you've seen an environment with so many options unless you bought prior to 2008, or lived elsewhere. However, we aren't far off of our 40-year average of available inventory. You now have OPTIONS. We are seeing more negotiations on the table for both price and once you're under contract (inspection items most likely). Homeowners know that you have a lot of options and thus are willing to work more with buyers so everybody can get moving forward to the next chapter of their lives.
Let me speak to the Sellers in the House:
Consequently, if you own a home and you're looking to sell, you need to do two things: 1. Prepare and Present: Take care of any issues, repairs, old systems, and potential items that will come up at inspection (email me if you'd like an analysis completed). You have one chance at a first impression. Remember, you are providing a product that will likely be the largest investment that the buyer has ever purchased and they're likely making this purchase with higher interest rates than what you current hold. AND, 2. Price Accordingly: The days of just listing your home, getting 10 offers, and selling 'as-is' iin 2 days are over. The only time this works is if you are selling a property more in alignment with what an investor is looking for. Doing a full analysis and adjusting appropriately is essential in finding a buyer and successfully closing.
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