Americans Are Finally Selling Their Homes

New listings of homes up for sale soared for the week ending March 23, according to realtor.com, offering more opportunities for buyers who could see the supply increases prices result in lower prices.

Sellers putting their properties on the market jumped by nearly 15 percent for the week compared to a year ago, amounting to the fastest rate of increase in new listings since the summer of 2021, said realtor.com economist Jiayi Xu.

Meanwhile, active inventory was also up, 25.5 percent higher than they were at the same time in 2023.

"For [the] 20th straight week, active listings registered above prior year level, which means that today's home shoppers are able to consider more options for existing homes for sale," Xu said in a note.

Xu added that while the improvements in homes available in the market was encouraging, it has yet to recover to the levels seen prior to the pandemic. But buyers willing to take the plunge in purchasing property, they are set to see more options available in the market, which could also give them opportunity to find lower prices in the process.

Read more: What is a Mortgage? Types & How They Work

"As the number of fresh listings continues to grow, homebuyers this spring have a wider array of options compared to this time last year," Xu said. "Additionally, the increased listings might put some downward pressure on prices, offering relief to homebuyers."

But elevated mortgage rates may still prove prohibitive for buyers. While rates have come down from their 8 percent peak of the fall of 2023, they are still close to 7 percent. This is substantially higher than the 2 to 3 percent range some Americans were able to secure during the pandemic.

"With mortgage rates fluctuating between the 6.5 [percent] to 7 [percent] range since the starting of the year, many homebuyers may opt to delay their purchasing plans in anticipation of lower rates, thereby reducing competition," Xu said.

Nevertheless, the week ending March 23 still saw homes spending less time on the market, suggesting that some buyers are willing to brave their high rates and purchase homes.

"For 25 weeks in a row, the typical home spent less time on the market than the same week one year prior, the smallest gap since November 2023," Xu pointed out. "While inventory has grown notably compared to last year, homes are still selling relatively quickly, likely because inventory levels are still significantly lower than pre-pandemic times."

Properties on sale are selling quicker as buyers see more options, she added.

Read more: How To Sell Your Home

"More home options mean more buyers are finding what they are looking for amid scarce inventory, so homes continue to move relatively quickly," Xu said.