The Latest on Supply and Demand in Housing



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.

The Latest on Supply and Demand in Housing | MyKCM

This year, buyer demand has eased as higher mortgage rates 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 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 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 your trusted real estate professional, John Foster,  to understand how the increase in supply has also increased your negotiation power. John knows the market and will 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 as this graph shows:

Months Supply of Homes in Forsyth County (Cumming GA)New Listings, homes under contract and closes units are down from September 2022 to the prior September.  What I watch closely is the months supply of inventory.  It is up 73% to a 1.9 months supply of homes for sale - it is way below the 6 months supply of homes which represents a "normal" market.

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 an me and price your house based on current market value, 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.  Last week I listed a home for sale, it was in excellent shape and we priced it right and had 5 offers and under contract in 4 days, for $48K over list price.  There is strong demand for homes that are priced right and in good shape.

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 your trusted real estate professional (Me) . Let’s connect so you know what’s happening in our local market and what that means for you.  Call or text me at 770 722-7010 - or email me at John.Foster@kw.com.