Homebuyers finally catch a break with more inventory

More housing options is a good thing for homebuyers

While housing inventory is rising, it’s a good thing, not a repeat of the collapse because of the financial crisis. As you can see below, the sales collapse from 2005 to 2007 created a vertical spike in active listings, which moved inventory from 2.5 million to 4 million. The sales collapse in 2022 (due to sudden rate hikes) did not have the same result and it has taken three years of the lowest home sales ever — adjusting to the workforce — just to get active listings back to 1.5 million.

Why Is this Important?

I believe mortgage rates will remain higher for an extended period until the labor market breaks, so the only real solution to housing affordability is an increase in housing supply, which would help…