Luxury Outlook | With Inventory Increases, Markets Begin To Turn—Slightly—in Buyers’ Favor

Amid increasing interest rates and uncertain economic conditions, we’re seeing moderate increases in home inventory, and buyers may find the balance of power shifting slightly in their favor.

Buyers—finally—are breathing a sigh of relief.

“Even though inventory has increased, buyers aren’t quite yet in the driver’s seat,” says Shelton Wilder, sales associate, Sotheby’s International Realty–Brentwood Brokerage. That said, “there is a slight change in negotiating power and keeping contingencies in place.”

While more homes may come onto the market in the coming months, don’t expect to see inventory increase overnight, says Lawrence Yun, chief economist for the National Association of Realtors. Total inventory was at 1.22 million units at the end of October 2022, up from the seasonal low in January 2022 of 850,000. The October number was down 0.8% from both September 2022 and October 2021. In October 2022, there was a 3.3-month supply, up from 3.1 months in September 2022 and 2.4 months in October 2021.

“We don’t anticipate a large increase because many homeowners won’t want to give up their low interest rate from refinancing or purchasing over the last two years,” Yun says. “We may see some moderate increases, but not anything drastic.”

This blog originally appeared on SIR.com, read it here >