Is Housing Inventory Finally Getting Back to Normal?

At The Edit, we know how challenging it has been for buyers to find the right home in recent years. The search often felt like a sprint, with fewer options and a fast-moving market. But the landscape is changing, and we’re here to help you understand what that means for your next move.

After years of low housing inventory, which created fierce competition and limited options for buyers, the market is finally showing signs of rebalancing. While challenges remain, especially around affordability, new data reveals a significant shift in supply, and it may just be the opportunity buyers have been waiting for.

A Post-Pandemic High in Listings

According to Realtor.com’s April housing trends report, active listings have jumped 30.6% year-over-year, reaching 959,251 homes. That puts current inventory above April 2020, though still 16% below pre-pandemic norms in April 2019. It is a notable milestone, marking the highest inventory point since the pandemic's start.

While more homes are available, buyer activity has slowed. Pending home sales fell 3.2% compared to last year, mainly due to rising mortgage rates and lingering economic uncertainty. Still, this shift gives prepared buyers more negotiating power and a chance to act with less pressure.

Why Is Inventory Rising Now?

Two key factors are driving the growth in listings:

1. More Sellers Are Listing: Many homeowners have been waiting for mortgage rates to drop. But with rates holding steady, more are choosing to list anyway, especially those who need to move for personal or financial reasons.

2. Homes Are Sitting on the Market Longer: In May 2025 the average home took 51 days to sell. This return to a more normal pace means more homes are available at any given time, increasing total inventory.

Sellers Are Becoming More Flexible

Inventory isn’t the only thing shifting; pricing behavior is, too. In April 2025, 18% of listings saw price reductions, the highest for April since 2016. While the national median list price held steady at $431,250, price adjustments signal that sellers are adapting to changing demand.

As Danielle Hale, Chief Economist at Realtor.com, notes: 

“The number of homes for sale is rising in many markets, giving shoppers more choices than they’ve had in years. Sellers are becoming more flexible on pricing . . . the market is starting to rebalance.”

Inventory Growth Isn’t Uniform Across the U.S.

Every region in the U.S. saw at least 19% inventory growth from a year ago, with the West leading at nearly 41%. But despite this widespread progress, not all markets are at "normal" inventory levels yet.

Source: Keeping Current Matters - 2025

Compared to pre-pandemic benchmarks (2017–2019):

• Some regions are approaching typical inventory levels, offering more buyer choice and a more balanced market.

• Others still have ground to make up, meaning competition may remain tight depending on location.

Source: Keeping Current Matters - 2025

Economic Headwinds Still Present

While inventory is improving, broader economic concerns continue to affect buyer confidence:

• Mortgage rates rose again, hovering around 6.73% in April 2025. 

• Consumer confidence took a hit after new tariffs were announced in April 2025.

• Pending home sales declined for the fourth straight month.

• Affordability remains a key challenge: Buyers now need to earn about $114,000/year to afford a median-priced home, up from $67,000 five years ago.

What’s Happening in South Florida?

In South Florida, inventory is rising, but it still has not reached pre-pandemic levels. As of May 2025, single-family home supply across Miami-Dade, Broward, and Palm Beach counties is hovering around a healthy 6-month level. That is a significant improvement from the historic lows of 2022, though inventory remains tight in the more affordable price tiers. In Miami-Dade, for example, only 2% of homes are listed under $400,000, while 42% are priced at $1 million or more. This growing inventory, especially in the high-end market, is shifting leverage toward buyers, with increased seller concessions and more room to negotiate, especially in luxury price points. Despite economic uncertainty, these market conditions present an opportunity for well-prepared buyers across South Florida.

What This Means for Buyers

If you’re financially prepared, this shifting market presents new opportunities:

• More options = greater chances of finding a home that fits your needs.

• Longer market times = more breathing room to make informed decisions.

• Price flexibility = better room to negotiate.

Still, real estate remains hyperlocal. The pace of inventory recovery and pricing trends vary city by city. That’s why it's crucial to work with a knowledgeable local agent.

What This Means for You

The housing market is evolving and for buyers, that’s welcome news. With inventory on the rise and sellers becoming more flexible, you may finally have the breathing room to find a home that truly fits your lifestyle.If you’re considering making a move, now is the time to:

• Evaluate your financial readiness

• Explore your local market's inventory trends

• Work with The Edit’s expert local agents, your trusted guide to finding the right home for your lifestyle.

• Try our Mortgage Calculator to run the numbers and plan with confidence.

Because in real estate, timing matters, but local insight matters more.

At The Edit, We’re More Than Real Estate Experts

Navigating a changing market takes more than good timing, it takes clarity, strategy, and trusted guidance. At The Edit, we help you make sense of shifting inventory and rising opportunities, tailoring each step to your lifestyle and goals.

Ready to explore your options in Miami? Let’s talk. Our team is here to guide your next move with confidence, ease, and elevated service.