After several years of fierce competition driven by a shortage of homes, the housing market is gradually shifting. Over the past year, the number of properties available for sale has increased, and depending on where you live, that rise may significantly broaden your options.
January recorded the highest inventory levels since 2020—a notable milestone that points toward a return to more typical, pre-pandemic conditions. Although the market hasn’t fully normalized nationwide, and additional supply won’t immediately resolve every issue, the recent increase is already reducing the intense competition buyers have experienced.
When more homes are available, buyers benefit from having extra time to make decisions, a wider selection of properties, and stronger negotiating leverage. In contrast, limited supply creates urgency, fuels bidding wars, and makes the process more stressful. Since 2020, tight inventory produced exactly that high-pressure environment. Now, those conditions are gradually easing.
More Areas Are Regaining Balance
Inventory recovery isn’t uniform across the country—some regions are rebounding faster than others. In January 2025, just 41 of the 200 largest metro areas had returned to typical inventory levels. By the end of the year, that figure had risen to 90—nearly half. That represents meaningful progress in a relatively short time, and the upward trend continues.
Inventory Is Expected to Grow Further
Projections indicate that housing supply could increase by another 10% this year. If so, more markets may achieve balanced conditions. By fall, national inventory levels could approach those seen between 2017 and 2019, signaling a broader move toward market stability by year’s end.
Bottom Line
While housing inventory hasn’t fully returned to normal across the country, the trajectory is clearly positive—and some markets have already reached balanced levels.
For buyers who have been waiting for more choices and less pressure, this could be the most favorable market environment in years.