Is the Housing Market Returning to Normal? Coachella Valley
Understanding Today’s Housing Inventory Landscape
In today’s turbulent real estate climate, one of the most talked-about issues is housing inventory. Whether you’re a potential buyer waiting for the right moment or a homeowner considering listing, it’s crucial to understand what inventory levels really mean — and how they affect pricing, competition, and negotiating power. Experts across the board, from to local mortgage professionals, agree: we’re not yet back to a “normal” market, but we are seeing some notable shifts. At , we believe education is power, so let’s dive into what’s really happening with housing supply and how it impacts your next move.
Inventory Levels Are Higher, But Still Not “Normal”
It’s easy to misunderstand the market when headlines scream extremes. Yes, inventory levels are increasing, but that doesn’t mean we’ve reached a balanced market. Traditionally, a healthy housing market has about six months of inventory. This benchmark refers to the number of months it would take to sell all current listings at the current sales pace. During the past few years, we’ve seen a historically low supply, sometimes dipping as low as one and a half months.
Right now, the national average inventory has crept up to about four to four and a half months. That’s an improvement — but still short of the six-month threshold considered normal. This shift represents a transition phase. We’re not in a buyer’s market, but we’re also no longer deep in the tight seller’s market that defined much of the past few years.
The Impact of Slowing Home Sales
Here’s where the numbers get more nuanced. The pace of home sales is slowing across the country. A recent report shows existing home sales hovering around 4.02 million units. When fewer homes are sold, the sales rate drops, and that changes how inventory is calculated. Even if the number of available homes stays the same, slower sales stretch out the time it would take to sell them. This dynamic makes inventory appear to be higher in terms of “months of supply,” even if the actual number of homes on the market hasn’t surged.
That’s why understanding both the raw number of homes for sale and the pace at which they’re being purchased is key to interpreting the current housing climate.
What This Means for Prices: A Mixed Signal
Despite the increase in inventory, home prices in many markets are still creeping up. That might sound contradictory — after all, more homes should equal less competition and lower prices, right? Not necessarily. Real estate is a local game. In some areas, particularly desirable ones, even modest increases in inventory can’t keep up with demand.
Moreover, sellers are still hesitant to list their homes. Many are locked into ultra-low mortgage rates and reluctant to trade up or down in today’s rate environment. This creates a bottleneck where buyers have more options than they did a year ago, but still face tight competition in certain neighborhoods or price points.
Buyers Are Cautious — and That’s Opening Doors
A more subtle shift is happening in buyer psychology. Between volatile headlines, concerns about inflation, and the stock market’s ups and downs, many would-be homebuyers are staying on the sidelines. Real estate agents report that clients are worried about their 401(k) balances, concerned that inflation could rise again, and unsure whether now is the “right time” to jump in.
But here’s the key insight: this moment of hesitation is creating opportunity. Fewer buyers mean less competition. And that gives those who are shopping for homes increased leverage. Buyers who have financing in place and are ready to move quickly may find they can negotiate on price, ask for repairs or concessions, or even score a better interest rate with the right strategy.
A Rare Window of Negotiation Power
If you’ve been waiting for the frenzy to slow down so you could make a move with more confidence, this might be your window. While interest rates are still higher than we’ve seen in past years, they’re not likely to return to pandemic-era lows anytime soon. Meanwhile, more homes are available, and sellers are more willing to work with buyers who are serious and financially prepared.
In short, this is one of the few times in recent memory when buyers have both options and negotiating power. It’s not a wide-open buyer’s market yet — but the door is cracked open. If you’re ready, it might be time to walk through it.
Why MortgageWorks Believes in Clarity Over Chaos
At MortgageWorks, we’ve weathered the ups and downs of the market right alongside our clients. We know it can be hard to make a major decision like buying or selling a home when headlines are full of conflicting messages. That’s why we focus on facts, context, and personalized guidance. Whether inventory levels are creeping up or the market is shifting beneath our feet, our role is to help you understand what it means for you, not just the national narrative.
FAQ: Navigating the Current Housing Market
Is housing inventory really going up?
Yes, housing inventory is rising compared to the extremely low levels we saw in the past few years. However, it hasn’t yet reached the levels typically associated with a balanced market. Most experts agree that a “normal” market has about six months of inventory. Today’s inventory levels are hovering around four to four and a half months in many areas. This is an improvement, but it’s not a return to true equilibrium.
Why are prices still increasing if there are more homes for sale?
Price growth is influenced by more than just the number of homes on the market. In many areas, demand still outpaces supply. Additionally, sellers are hesitant to list their homes if they’re currently enjoying low mortgage rates. This hesitation limits new listings and keeps supply tighter than it may appear. As a result, prices may continue to rise, especially in high-demand neighborhoods or metro areas where inventory gains are modest.
What is “months of supply,” and why does it matter?
“” is a metric that shows how long it would take to sell all the homes currently on the market at the current sales pace. It helps identify whether a market favors buyers, sellers, or is balanced. A market with six months of supply is typically considered balanced. Less than that usually favors sellers; more than that may favor buyers. Right now, months of supply are increasing, but still sit below the six-month norm.
Is now a good time to buy a house?
The answer depends on your financial situation and long-term goals. While interest rates remain higher than what we saw during the pandemic, buyers today face less competition and may have more room to negotiate. If you’re financially prepared and plan to stay in your home for several years, buying now could position you well, especially if prices continue to rise. Working with a trusted mortgage advisor can help you evaluate whether today’s conditions align with your goals.
Are sellers more willing to negotiate now than before?
Yes, in many cases, sellers are becoming more flexible. With fewer buyers actively shopping and inventory rising, sellers may be more open to offers below the asking price, concessions for repairs, or helping cover closing costs. This doesn’t mean you can expect a steep discount on every property, but it does mean the competitive pressure has eased somewhat, giving buyers more opportunity to advocate for themselves.
What should I do if I’m still unsure about buying?
If you’re unsure, that’s okay. The key is to gather information, explore your options, and who understand the market. A mortgage pre-approval can give you clarity on your buying power, while a conversation with a real estate expert can help you better understand what’s happening in your specific area. Even if you decide to wait, having a plan in place will put you in a stronger position when you’re ready.
Conclusion: Don’t Miss the Window
The current housing market is complex, but within the noise lies a real opportunity. As inventory levels increase and buyer competition softens, savvy homebuyers can take advantage of a rare shift in power. At MortgageWorks, we’re here to guide you through every step, offering clarity, confidence, and a strategy tailored to your goals.
If you’re thinking about buying a home, refinancing, or just want to understand your options, reach out to us today. Let’s turn this market knowledge into your next smart move. 760–969–5023
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.
