"When assessing home price momentum, believes it's important to monitor active listings and months of supply. If active listings start to rapidly increase as homes remain on the market for longer periods, it may indicate pricing softness or weakness. Conversely, a rapid decline in active listings beyond seasonality could suggest a market that is heating up. Since the national pandemic housing boom fizzled out in 2022, the national power dynamic has slowly been shifting directionally from sellers to buyers."
"Generally speaking, local housing markets where active inventory has jumped above pre-pandemic 2019 levels have experienced softer home price growth (or outright price declines) over the past 36 months. Conversely, local housing markets where active inventory remains far below pre-pandemic 2019 levels have, generally speaking, experienced, relatively speaking, more resilient home price growth over the past 42 months. Where is national active inventory headed? National active listings are on the rise on a year-over-year basis (+10% between January 31, 2025, and January 31, 2026)."
Monitor active listings and months of supply to assess home price momentum. Rapid increases in active listings together with longer market time indicate pricing softness or weakness. Rapid declines in active listings beyond seasonal norms indicate a heating market. Since the pandemic housing boom faded in 2022, the national balance has gradually shifted from sellers toward buyers, with regional variation. Markets with active inventory above pre-pandemic 2019 levels have tended to see softer price growth or declines over the past 36 months. Markets with inventory far below 2019 have experienced relatively more resilient price growth over the past 42 months. National active listings rose 10% year-over-year between January 31, 2025 and January 31, 2026, giving buyers more leverage and shifting some seller markets to balanced or buyer markets.
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