Good news for home buyers. The past few years have been challenging for homebuyers, especially with higher home prices and mortgage rates. And if you’re trying to buy a home, it’s easy to worry you won’t be able to find something in your budget.

But here’s what you need to know: More homes, both new and existing, are now for sale, giving buyers better chances to find the right home.

1. There are 22% More Existing Homes for Sale

Data from Realtor.com says the number of existing homes for sale improved by an impressive 22% in 2024. Experts expect your pool of options to improve this year. Forecasts project inventory to grow 11-15% by year-end (see graph below).

Here’s why this is so good for your search. If you haven’t seen a house with all the features you need, know that you’ll have more options as the number of homes for sale grows. That means a better chance of finding a home that checks all your boxes. As Ralph McLaughlin, Senior Economist at Realtor.com, says:

“It could be a particularly good time to get out into the market . . . you’re going to have more choice. And that’s not something that buyers have really had much over the past several years.”

2. There Are More Newly Built Homes on the Market

According to data from the Census and the National Association of Realtors (NAR), 31.1%, or roughly 1 in 3, homes on the market are newly built. That’s more than the norm (see our chart).

But don’t worry, that’s not because builders are overdoing it – it’s just that they’re trying to catch up after years of underbuilding.

The best part is that since builders have been focusing on smaller homes with lower price points, new builds may be less expensive than expected. So, while many people write off new construction because it’s easy to assume the costs are way higher, lately, that price gap isn’t as big as you’d think.

As CNET says:

“If you live in an area where there’s a lot of new construction happening . . . you might be able to purchase a new house for a price similar to or even less than a pre-owned one.”

If you haven’t been able to find a home within your budget, it’s time to ask your agent about new builds. If you don’t, you may have been cutting your pool of options by about a third.

Buyer Bright Spot: Real Estate Expert Insights

More choices could be the key to unlocking your homebuying goals in 2025. Contact us to see what’s available in and around our area.

What features are you looking for in your next home? Let us know, and we’ll assemble a list of homes you’d love.