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October 20, 2022

The Latest on Supply and Demand in Housing

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Over the past two years, the substantial imbalance of low housing supply and high buyer demand pushed home sales and buyer competition to new heights. But this year, things are shifting as supply and demand reach an inflection point.


The graph below helps tell the story of just how different things are today.

Supply & demand ration changing quickly graph

This year, buyer demand has eased as higher mortgage rates[1] and mounting economic uncertainty moderated the market. This slowdown in demand is clear when you look at the red bar on the graph. It uses the latest data from ShowingTime[2] to illustrate how showings (an indicator of buyer demand) have softened by just over 12% compared to the same time last year.


Now for a look at how housing supply has changed, turn to the green bar. It uses data from Realtor.com[3] to show active listings are up nearly 27% compared to last year. That’s because the moderation of demand allowed housing inventory to increase in 2022.


What Does This Inflection Point Mean for Buyers?

If you’re thinking of buying a home, you’ll have less competition and more options than you would have had last year. Enjoy having more homes to choose from in your home search and lean on a trusted real estate professional to understand how the increase in supply has also increased your negotiation power. Your Realtor® can talk you through the opportunities and challenges buyers face in today’s shifting market. You may be surprised to find they’re different than they were a year ago.


What Does This Inflection Point Mean for Sellers?

If you’re looking to sell your house, know that inventory is still low overall. That means, if you work with a Realtor® to price your house based on current market value[4], it will still sell despite the inventory gains and moderating buyer demand this year. That’s because there are still buyers out there who want to move, and your house may be exactly what they’re looking for.


Bottom Line

If you’re thinking of buying or selling a home, the best place to turn to for information on today’s supply and demand is a trusted real estate professional.


Contact a Realtor® today by visiting www.onekeymls.com/Directory and let a professional help you understand your options, considering local area market conditions.

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