Active inventory picked up at the end of the year. According to the ResiClub blog, active home listings across the U.S. increased by 22% between December 2023 and December 2024, with some regions even resembling buyers' markets. If the current pace of inventory growth—157,333 homes per year—continues, national active inventory could reach over 1 million by December 2025 and exceed 1.18 million by December 2026.
Despite this growth, active nationwide inventory remains 15.7% below levels seen in December 2019, and tight resale markets remain the norm in many parts of the U.S. However, some regions, such as the Sun Belt and Mountain West are seeing more balanced conditions emerging. In August 2024, just four states had returned to or surpassed 2019 inventory levels, but by December 2024, that number rose to nine states, including Arizona, Colorado, Florida, Idaho, Oklahoma, Tennessee, Texas, Utah, and Washington.
Unlike many Sun Belt housing markets, many Northeast and Midwest markets have lower levels of homebuilding. As new supply becomes available in Southwest and Southeast markets, and builders use affordability adjustments like buydowns to move it, it has created a cooling effect in the resale market. The Northeast and Midwest don’t have that same level of new supply, so resale/existing homes are pretty much the only game in town. Read more