What Buyers Need To Know About the Inventory of Homes Available for Sale

If you’re thinking about buying a home, you’re likely trying to juggle your needs, current mortgage rates, home prices, your schedule, and more to try to decide if you want to jump into the market.

If this sounds like you, here’s one key factor that could help you with your decision: there are more homes for sale today than there were at this time last year. According to Calculated Risk, for the week ending in November 18th, there were 47.7% more homes available for sale than there were at the same time in 2021. And having more options for your home search may be exactly what you need to feel confident about making a move.

Here’s a look at where the increased housing supply is coming from so you can get a better sense of what’s happening in the market today and what it means for you.

What Caused the Growth in Housing Inventory This Year?

The increase we’ve seen in housing supply this year isn’t from the source you think it is. Rather than an influx of recent homeowners listing their houses for sale (known as new listings), the primary reason the supply has grown is that homes are staying on the market a bit longer (known as active listings).

That’s happening because higher mortgage rates and home prices have helped moderate the peak frenzy of buyer demand, which has slowed down the pace of sales. And, as the pace of sales has eased, inventory has grown as a result.

The graph beside uses data from realtor.com to show that it’s active listings, not new listings, that have driven the growth we’ve seen over the past few months:

And while overall inventory gains may slow down this winter due to typical housing market seasonality, you still have a chance to capitalize on the current supply.

What This Means for Your Home Search

Regardless of the source, the increase in available housing supply is good for buyers. More homes available for sale means you have more options to choose from as you search for your next home, and you may even have more time to consider them.

So, if you tried to buy a home last year and lost out in a bidding war or just couldn’t find something you liked, this may be the news you’ve been waiting for. If you start your search today, those additional options should make it less difficult to find a home you love, especially as some other buyers pause their search this holiday season.

Just remember, housing supply is still low overall, so it won’t suddenly be easy – it’ll just be less challenging than it was at this time last year. As a recent article from realtor.com says: “Despite this improvement in the number of homes actively for sale, active listings still lag their pre-pandemic levels.”

The increase in housing supply helps put you in a great position to kick off the new year in your dream home. And who better to help you find it than a trusted, local real estate professional?

Bottom Line

If you’re ready to jump into the housing market and see what’s available in our local area, let’s connect.

The Keys to Hosting a Stress-Free Holiday Gathering

Courtesy of The Scout Guide

One of the hallmarks of the season is a calendar full of soirées, and the most memorable usually occur in someone’s decked home. If you long to throw a holiday party but the stress of it all is holding you back, you’re not alone. We reached out to a few scouted party experts for their advice on how to host a casual gathering that’s low on fuss and big on quality time, which is the whole point in the first place. Go ahead and gather your people, cue the holiday music, and get busy making merry. 

Curate your guest list. There is no rule that says a holiday party has to be an over-the-top extravaganza. “Less is more in all aspects,” shares Taylor Larson, owner of Hill Event Co. in Monmouth County, New Jersey. For a casual gathering, your guest list can range from eight to 20, depending on the intimacy you’re going for. Anything bigger, and you get into large-party territory. Furthering the casual messaging, Larson recommends sending out a simple text with the date, location, and time, along with a note that their presence is all that’s needed. 

Make your space cozy. Whether sipping on a glass of wine around an outdoor firepit or enjoying company beside the hearth indoors, Larson stresses that ensuring your guests are comfortable is key for casual entertaining. Consider encouraging your guests to slip off their shoes and have a basket of blankets at the ready that invite settling and cozying up. 

Opt for a theme. Choosing a theme is a professional party planner’s trick. Not only does it give direction to your guests on what to wear, explains Anna Wynn Rogers, owner of Anna Wynn Event Designs in Huntsville, Alabama, but it streamlines your entire planning process from invitations to what food and drink to provide. There are many directions you can go, from Tacky Christmas and Favorite Holiday Movie to White Elephant and Best Holiday Dish Cook-off. The sky is truly the limit, and if you have a theme, the details come together way more effortlessly than an event that is more general. 

Keep your focus on your guests. The main objective of entertaining should always be around connection. Katie Denton, owner of Bees Nees in Virginia Beach, Virginia, makes a point to make her guests feel like the most important people in the world. “I always welcome them with grace and warmth,” she shares. “I try to greet each guest at the door with a handshake or a hug, offer to take their bags and jackets, and immediately take their drink order.” A stressed out host who is banging around in the kitchen rubs off on your guests, so she stresses that attention should always be on quality exchanges rather than fussing over decorations or highly involved food and drink prep. 

Batched cocktails for the win. Following the advice of simplified entertaining queen Ina Garten, Rachael Bruzas, co-owner/event designer at Party Little Things in Carmel, Indiana, and Chicago, Illinois, advises making batched cocktails in lieu of spending the evening with a cocktail shaker in hand. “I always make sure to have one or two pre-made cocktails for my guests to enjoy,” she shares. “There are so many great festive drinks for the holidays and most taste better the longer you prep ahead, giving the ingredients time to marry together in the fridge.” She keeps things special by styling her bar with on-theme drink stirrers, patterned straws, cheeky cocktail napkins, unique glasses, and an assortment of garnishes such as skewered fruits, fresh herbs, dried citrus slices, gourmet olives, and various bitters. Guests can then enjoy an interactive DIY bar experience and dress up their cocktail to their liking. Denton makes a point of having a pitcher of water available with glasses so guests can help themselves stay hydrated while imbibing.

Consider restraint with your menu. One area where people often go overboard is with food and drink options. Larson explains that all you really need is a great bottle of red wine, a few flavorful cheeses, and crackers. Bruzas opts to purchase ready-made items rather than spending all her time on cooking up elaborate recipes. “I’ll pop into my local high-end market and bakery and seek out a few high-quality, pre-made items, saving me hours of work,” she explains. She also pays special attention to presentation; plating her store bought items on gorgeous serving pieces and adding garnishes adds a special je ne sais quoi. Denton’s entertaining go-to is baked brie covered in phyllo dough. “I serve it warm with crackers and fig spread and it’s always a crowd pleaser,” she says. 

You don’t have to go overboard on decor. Presumably, your halls will already be decked for the holidays, so in the name of simplicity, you don’t really need to do anything extra. If you do, Denton advises adding greenery to vases, either trimmed from your backyard or even a couple of snips from your Christmas tree. “I also love sourcing eucalyptus and rosemary and adding it to unexpected places around the house, focusing on areas where my guests are going to relax or dine,” she says. As a final touch, she sprinkles light-smelling or unscented candles throughout her entertaining spaces, and it’s an especially nice and refreshing touch in the bathroom.  

Music is essential. As with any gathering, your playlist selection sets the tone for your party. Rogers is always a fan of old-school holiday music, but if that doesn’t fit your gathering, there are plenty of festive playlists on the music streaming service of your choice—or make your own—that will help make your event a hit. A good rule of thumb is to start out with the classics, roll into more contemporary music, and close out with calmer selections. Rogers notes that when you’re ready for your gathering to wrap, silence is usually the social cue that “you don’t have to go home, but you can’t stay here,” so use it to your advantage. 

What Every Seller Should Know About Home Prices

If you’re trying to decide whether or not to sell your house, recent headlines about home prices may be top of mind. And if those stories have you wondering what that means for your home’s value, here’s what you really need to know.

What’s Really Happening with Home Prices?

It’s possible you’ve seen news stories mentioning a drop in home values or home price depreciation, but it’s important to remember those headlines are designed to make a big impression in just a few words. But what headlines aren’t always great at is painting the full picture.

While home prices are down slightly month-over-month in some markets, it’s also true that home values are up nationally on a year-over-year basis. The graph below uses the latest data from S&P Case-Shiller to help tell the story of what’s actually happening in the housing market today:

As the graph shows, it’s true home price growth has moderated in recent months (shown in green) as buyer demand has pulled back in response to higher mortgage rates. This is what the headlines are drawing attention to today.

But what’s important to notice is the bigger, longer-term picture. While home price growth is moderating month-over-month, the percent of appreciation year-over-year is still well above the home price change we saw during more normal years in the market.

The bars for January 2019 through mid-2020 show home price appreciation around 3-4% a year was more typical (see bars for January 2019 through mid-2020). But even the latest data for this year shows prices have still climbed by roughly 10% over last year.

What Does This Mean for Your Home’s Equity?

While you may not be able to capitalize on the 20% appreciation we saw in early 2022, in most markets your home’s value, on average, is up 10% over last year – and a 10% gain is still dramatic compared to a more normal level of appreciation (3-4%).

The big takeaway? Don’t let the headlines get in the way of your plans to sell. Over the past two years alone, you’ve likely gained a substantial amount of equity in your home as home prices climbed. Even though home price moderation will vary by market moving forward, you can still use the boost your equity got to help power your move.

As Mark Fleming, Chief Economist at First American, says: “Potential home sellers gained significant amounts of equity over the pandemic, so even as affordability-constrained buyer demand spurs price declines in some markets, potential sellers are unlikely to lose all that they have gained.”

Bottom Line

If you have questions about home prices or how much equity you have in your current home, let’s connect so you have an expert’s advice.