For several years, homebuyers across the country have been navigating a market defined by scarcity. Limited inventory, intense competition, and rapid decision‑making became the norm as the number of available homes fell well below what’s typical. But over the past year, something important has shifted. Inventory has begun to recover, and in many markets, that change is already transforming the buying experience in meaningful, encouraging ways.

Recent data from Realtor.com shows that the number of homes listed for sale in January reached its highest point since 2020. That milestone matters because it signals a gradual return to the type of market conditions buyers were accustomed to before the pandemic disrupted the balance between supply and demand. While the national market hasn’t fully returned to pre‑2020 norms, the steady rise in available homes is easing the pressure that defined the last several years.

This improvement doesn’t instantly resolve every challenge buyers face, nor does it mean the market has completely normalized. But it does mark a turning point — one that gives buyers more breathing room, more choices, and more negotiating power than they’ve had in quite some time.

Why Rising Inventory Matters for Buyers

When the number of homes for sale increases, the entire dynamic of the market shifts. Buyers who once felt rushed or overwhelmed now have the opportunity to approach their search with more confidence and clarity. A healthier level of inventory brings several advantages:

1. More Time To Make Decisions

In the ultra‑competitive environment of the past few years, buyers often had to make major decisions within hours of a home hitting the market. With more listings available, that urgency eases. Buyers can compare options, revisit properties, and make thoughtful choices without the fear that every home will receive multiple offers within a day.

2. A Wider Range of Options

A larger pool of available homes means buyers are more likely to find properties that align with their preferences, budgets, and long‑term goals. Whether someone is searching for a specific neighborhood, a certain architectural style, or particular amenities, increased inventory expands the possibilities.

3. Improved Negotiating Conditions

When supply is extremely limited, sellers hold most of the leverage. As inventory grows, the balance begins to shift. Buyers may find that sellers are more open to negotiations on price, repairs, or closing timelines. While this doesn’t mean buyers suddenly have full control, it does create a more equitable environment.

For years, the market felt fast, stressful, and unforgiving. Now, with inventory trending upward, the experience is becoming more manageable — and in many areas, even enjoyable again.

More Markets Are Returning to Typical Inventory Levels

The pace of recovery varies across the country, but the overall trend is unmistakably positive. According to Lance Lambert, Co‑Founder of ResiClub, the number of major metro areas with inventory levels at or above their long‑term norms has grown dramatically in just over a year.

In January 2025, only 41 of the 200 largest metropolitan areas had returned to what would be considered typical inventory levels. That meant the vast majority of markets were still operating with a significant shortage of available homes.

But by the end of the year, that picture had changed substantially. Nearly half — 90 out of the 200 largest metros — had reached or surpassed their historical inventory averages. That’s more than double the number from the previous year, representing a major step toward restoring balance in the housing market.

This rapid improvement shows that the recovery isn’t isolated to a handful of regions. Instead, it’s a widespread trend that’s gaining momentum. And importantly, the progress doesn’t appear to be slowing down.

Inventory Growth Is Expected To Continue Through This Year

Looking ahead, forecasts suggest that the number of homes for sale could rise by another 10% over the course of this year. If that projection holds, the national market could reach inventory levels similar to those seen between 2017 and 2019 by this fall — a period widely considered to represent a more typical, stable housing environment.

Reaching those levels would mark a significant milestone. It would mean that, for the first time in years, buyers across the country could expect a market that feels familiar, predictable, and balanced.

This anticipated growth isn’t just a statistic — it has real implications for anyone planning to buy a home. As inventory expands, buyers gain:

• More opportunities to find the right home
• Less pressure to make split‑second decisions
• A better chance of negotiating favorable terms
• A smoother, more enjoyable buying process

Hannah Jones, Senior Economic Research Analyst at Realtor.com, describes the shift this way: “Housing market conditions are gradually rebalancing after several years of extreme seller advantage. Buyers are beginning to see more options and modest negotiating power as inventory improves.”

Her perspective captures the essence of what’s happening. The market is no longer working against buyers. Instead, it’s beginning to support them again — and that’s a welcome change.

What This Means for Today’s Buyers

If you’ve been waiting for the right moment to begin your home search, the current environment may offer the best conditions buyers have seen in years. While the market isn’t fully back to normal everywhere, the direction is unmistakably positive.

Here’s how the improving inventory landscape can benefit you:

You Can Explore Without Feeling Rushed

The frantic pace of the past few years often forced buyers to compromise or settle. With more homes available, you can take the time to evaluate your options and make decisions that align with your long‑term goals.

You May Have More Negotiating Power

As inventory grows, sellers recognize that buyers have alternatives. This can open the door to more balanced negotiations, whether that involves price adjustments, repair credits, or flexible closing dates.

You’re More Likely To Find a Home That Truly Fits

A broader selection increases the likelihood that you’ll find a property that checks your boxes — whether that’s a specific school district, a larger yard, or a particular layout.

You Can Approach the Process With Confidence

Knowing that the market is becoming more balanced can reduce stress and help you feel more in control of your home search.

Why This Moment Stands Out

The past few years have been anything but typical for the housing market. Buyers faced unprecedented challenges, from limited inventory to intense bidding wars. Many people postponed their plans, waiting for conditions to improve.

Now, for the first time in a long while, the market is offering a more favorable environment. Inventory is rising. Competition is easing. And forecasts suggest that these trends will continue.

This doesn’t mean every market is the same. Some areas have already reached or exceeded their historical inventory levels, while others are still catching up. But the overall trajectory is clear: the market is moving toward balance.

For buyers, that shift represents opportunity — the opportunity to explore, to negotiate, and to find a home that truly fits their needs.

The Bottom Line

Housing inventory is not fully back to normal nationwide, but the progress over the past year has been significant. More homes are coming onto the market, more metro areas are returning to typical inventory levels, and forecasts point to continued growth throughout the year.

If you’ve been waiting for a moment when the market offers more choices and less pressure, this is the strongest setup buyers have seen in quite some time. Conditions are improving, and in many areas, they’re already better than they’ve been in years.

To understand what these trends mean for your specific area — and how to make the most of today’s evolving market — connect with a knowledgeable real estate professional who can guide you through the local landscape and help you take advantage of the opportunities ahead.