If you’re thinking about buying your first home, you may have heard that the number of homes for sale is going up. That might sound alarming—especially with some media outlets suggesting it could be a sign of a housing crash.

But here’s the truth: rising inventory isn’t bad news. In fact, for first-time buyers like you, it could be a step in the right direction.

INVENTORY IS UP, BUT THAT’S NOT THE WHOLE STORY
According to Realtor.com, housing inventory recently hit its highest level since 2020. That means there are more homes available now than there have been in recent years.

But here’s what matters: even with that increase, the total number of homes on the market is still well below normal pre-pandemic levels. So while you’re seeing more listings, we’re nowhere near having “too many” homes available.

THIS ISN’T 2008 ALL OVER AGAIN
One common fear is that more homes on the market could signal a price crash—like what happened during the Great Recession. But today’s market is fundamentally different.

Back then, the market crashed because there were too many homes, risky lending practices, and not enough buyers. Today, we’re in a completely different situation:

• Lending standards are stricter

• Homeowners have more equity

• And most importantly, we’re still short millions of homes nationwide

Years of underbuilding means we’ve been playing catch-up. Rising inventory now isn’t a crash coming—it’s the market trying to correct itself.

The red bars in the graph below show all the years where housing starts (new builds) didn’t keep up with household formation, going all the way back to 2012. The deeper the bars in the graph, the more the housing deficit grew (see graph below):

WHAT DOES THIS MEAN FOR HOME BUYERS?

• More listings = more choices. You’re less likely to get caught in intense bidding wars like buyers did just a couple of years ago.
• You have more time to make decisions. In a market with rising inventory, homes tend to sit a little longer, giving you breathing room.
• Prices are stabilizing. While home prices are still high in many areas, rapid increases have slowed—another sign of a more balanced market.

In short, you’re entering a market where the playing field is becoming a little more even. That’s great news for first-time buyers who were priced out or overwhelmed in recent years.

BOTTOM LINE
Don’t let the headlines scare you. Rising inventory doesn’t mean a crash is coming. It means the market is slowly returning to a healthier, more balanced place.

For first-time buyers, that means more opportunity, more choice, and a better shot at finding the right home—without feeling rushed or outbid.

Thinking about buying soon?

Now might be the right time to start seriously looking!