Last year marked a significant low in the housing market, with the fewest homes sold in over a decade. As we step into another year, the big question is: will the market rebound, or are we facing another slow year?

The Current State of Housing Inventory

The past year has been challenging for the housing market. Rising home prices coupled with increasing mortgage rates have contributed to a nationwide strain on inventory. Terms like “rate lock” and “affordability crisis” have dominated the discussion, explaining why many have paused their buying or selling plans.

For those new to the real estate industry, especially if your experience spans only the last five to ten years, this market condition might seem unprecedented. However, it looks like the days of tight housing supply are far from over.

Understanding the Market Context

While headlines might occasionally suggest that inventory levels are improving, the reality is more complex. Data shows that, despite some growth, the number of homes available for sale is still well below what would be expected in a normal market. This scarcity has turned housing inventory issues into a highly localized phenomenon.

Over the past month, all states have witnessed some degree of steady inventory growth, which is a positive sign. Yet, the market continues to face challenges, primarily due to the high mortgage rates which have thrown numerous curveballs at both buyers and sellers.

Looking Forward

As we navigate through this year, it’s crucial to stay informed and adaptable. The market’s complexity requires a deep understanding of both global trends and local dynamics. While we may not return to ‘normal’ anytime soon, recognizing the nuances of your local market can help you better navigate these turbulent times.

Whether you’re looking to buy, sell, or just stay informed, connect with me today. Together, we’ll explore your options and find the best strategies for success in today’s complex housing market.

Chenine Lozano, Real Estate Finance Expert
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C: 562-762-7511
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