What Does The Rise In Home Inventory Mean For Buyers and Sellers?

If you’ve been following the headlines, you’ve probably seen talk about housing inventory reaching its highest levels in years—especially when it comes to new construction. Some reports even compare today’s market to 2008. For those who lived through the crash, that can feel unsettling. But the truth is, today’s situation is very different, and the increase in inventory actually brings opportunities for both buyers and sellers.

As of August 2025, housing inventory has grown substantially. Nationally, active listings are up nearly 25–29% compared to last year, bringing available homes to their highest levels since before the pandemic. New construction inventory, in particular, has climbed, leading to concerns in the media. However, looking at new builds alone doesn’t give the full picture. To understand supply, you have to look at both new homes and existing homes. When you combine the two, it’s clear today’s overall supply is nowhere near the oversupply we saw in 2008.

In fact, the dynamics are almost the opposite of what we experienced back then. Before the crash, builders overbuilt, flooding the market with homes. But for the last 15 years, builders have consistently underbuilt, failing to keep pace with buyer demand. That long stretch of underbuilding created a severe shortage of homes. Even with the growth we’ve seen recently, experts estimate it could take more than seven years of above-average building just to close the gap. That’s why today’s rise in inventory should be seen as a sign of a market moving toward balance, not one heading for collapse.

For homebuyers, this shift is good news. More inventory means more options, fewer bidding wars, and more negotiating power. Sellers are offering concessions, homes are staying on the market longer (averaging about 58 days), and builders are rolling out incentives to compete. While mortgage rates remain in the 6.5–6.8% range, which impacts affordability, buyers now have more leverage and time to make thoughtful decisions.

For sellers, the growing competition means strategy is critical. Overpriced homes are likely to sit, and price reductions are becoming more common, especially in areas where inventory has surged. Sellers who price accurately, present their homes well, and are open to concessions are still seeing success. The good news is that most homeowners today have significant equity, which provides flexibility in adjusting to current market conditions.

The bottom line is that today’s housing market is not 2008. Yes, inventory is higher, but it’s helping create a healthier balance between buyers and sellers after years of extreme scarcity. If you’re thinking about buying, now is a great time to explore your options with more choices and negotiating power on your side. And if you’re selling, working with a knowledgeable agent is more important than ever to position your home competitively and make it stand out in a growing market. Give our team a call today to discuss what these market conditions could mean for your next home purchase or sale!

To learn more about the impact of increased housing inventory on the real estate market take a look at this article from Keeping Current Matters.