"Inventory growth was running at 33% year over year a few months ago, but it dropped to 17.66% last week. Let's find out what happened. In recent years, our inventory data has grown steadily in August, but this year it hasn't. I initially believed that we had not yet reached the peak of active inventory in 2025, but I've been proven wrong. Now we are entering the phase where inventory typically experiences its seasonal decline."
"Let's connect the dots: Our new listings data peaked on May 23, which is the earliest time frame in recent history to have that occur. Additionally, we experienced no significant growth during the peak months of 2025. Also in May, some sellers didn't get the price they wanted and started to withdraw their listings. Remember, most sellers are also homebuyers, and elevated mortgage rates probably discouraged some home sellers this year from keeping their homes on the market."
Total active housing inventory expanded strongly earlier in 2025, reaching 33% year‑over‑year growth, but growth slowed to 17.66% by late summer. New listings peaked unusually early on May 23, and there was no significant growth during the usual peak months. Some sellers withdrew listings after failing to get desired prices, while elevated mortgage rates discouraged other homeowners from listing. When mortgage rates fell below 6.64% for nine consecutive weeks, purchase applications strengthened and demand removed supply more quickly. These combined factors produced excellent early‑year inventory growth that began decelerating around mid‑June, entering a normal seasonal decline.
Read at www.housingwire.com
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