Housing Inventory Returns to Pre-Pandemic Levels, Pressuring Sellers

Housing Inventory Returns to Pre-Pandemic Levels, Pressuring Sellers

Below is a summary of the recent 'Money Talks Article'. 

The U.S. housing market is shifting noticeably as home listings surge and sellers increasingly reduce prices. Inventory levels have risen for 19 consecutive months, with major metros like Denver, Austin, Seattle, and Dallas now showing housing supply numbers that rival or exceed pre-pandemic levels. Nationally, available inventory is roughly 30% higher than this time last year.

As a result, sellers are cutting prices at rates not seen in nearly a decade. In May, about 20% of home listings featured price reductions—the highest level in over nine years. In some markets like Phoenix, nearly 35% of sellers dropped their asking prices in June.

Homes are also sitting longer. The average time on market has stretched to 51–53 days, about six days longer than last year. This cooling trend is giving buyers more time and leverage. With mortgage rates stabilizing around 6.7%, more buyers are feeling confident. A recent Fannie Mae survey showed that 26% of buyers now believe it’s a good time to purchase—a notable increase and the highest level in three years.

Sellers are adjusting their strategies. While some are offering rate buydowns as an incentive rather than cutting the list price directly, others are delisting and relisting in hopes of better timing or improved presentation. These tactics reflect a changing environment where the balance of power has shifted more toward buyers.

In short, the market is cooling from the frenzy of 2021–2022. Buyers now have more options, more time, and greater bargaining power. Sellers, meanwhile, must price competitively or offer creative incentives to stand out.

This return to more normal conditions is welcomed by many in the industry, but it also presents new challenges. Understanding these trends is essential for anyone looking to buy or sell in today’s housing market.

Weitz Comment - If you read this blog,  this is a not a surprise whatsoever. Look for much more pressure on  sellers this Fall/ Winter. 

For more information on investing in Snohomish County Real Estate, contact us any time. 

Scott Weitz

Weitz Commercial

Scott@weitzcommercial.com

t: (206) 306-4034