Will There Be More Houses for Sale in 2022?

Inventory has been the big real estate news story for 2021. Or rather, a lack of inventory. Tight supply conditions in housing markets across the U.S. have increased competition among buyers and boosted home prices.

Now, many people are wondering: Will there be more houses for sale in 2022?

The good news is that we are seeing a rise in new real estate listings in cities across the country. If this trend continues, which seems likely, there could be more houses for sale in 2022 compared to right now.

After many months of record-low inventory levels, this would be a positive development for home buyers across the U.S. It could ease competition and increase the chance of finding suitable a home within budget.

There Could Be More Houses for Sale in 2022

In early September, the research team from Realtor.com published a housing market update with data for major metro areas in the U.S. Among other things, this report showed an increase in the number of new real estate listings nationwide.

This is one indication that there could be more houses for sale in 2022.

According to Realtor.com, new real estate listings nationwide increased by 4.3% in August 2021 compared to a year earlier. Within the nation’s 50 largest metro areas, new listings rose by 5.1% year-over-year. The biggest gains were seen in Midwest cities like Columbus (25.6%) and Cleveland (21.6%).

Of the 50 metro areas contained within this report, well over half experienced an increase in new listings over the past year. Most of the growth occurred at the lower end of the pricing spectrum.

To quote the September 2021 report:

“New listings were up 4.3% from last year as new sellers continued to list entry-level homes in more affordable price ranges.”

Granted, total inventory levels are still down from a year ago. But the size of that deficit continues to shrink, as new properties come onto the market.

Given these trends, there will probably be more houses for sale in 2022 than there are right now.

How Would It Affect the Housing Market?

Four months now, real estate markets across the country have experienced a serious shortage of supply relative to demand. In other words, there aren’t enough homes listed for sale to meet the demand from local buyers.

This kind of scenario increases competition while boosting house values at the same time.

But the market could begin to shift over the coming months. If there are more houses for sale in 2022, it could ease competition among buyers and slow home-price growth.

Additionally, we could see more price reductions among sellers, as they are forced to compete with a higher number of other sellers and properties on the market.

In fact, we are starting to see some of these signs already. The September Realtor.com report mentioned earlier also showed an increase in the number of price reductions nationwide.

To quote the report:

“new sellers added more affordable entry-level homes to the market compared to last year, while others began adjusting [or lowering] listing prices to better compete with an uptick in inventory

Even With More Homes, Buyers Will Have to Work Hard

If current trends within the real estate market are any indication, there could be more houses for sale in 2022. That would certainly benefit home buyers, many of whom have been frustrated by the current lack of supply within the housing market.

But even if there are more homes for sale in 2022, the market will likely continue to favor sellers for the foreseeable future. It would take a significant shift in the supply-and-demand situation to create a buyer’s market scenario.

Summary of Key Points

We’ve covered a lot of data and trends in this report. Here are the key takeaways:

  • Housing market inventory levels have been very low for months now.
  • Now, many people want to know if there will be more houses for sale in 2022.
  • Recent reports showed an increase in the number of new listings coming on the market.
  • If this trend continues, there will likely be more homes for sale in 2022 than right now.
  • Continued inventory growth could have a cooling effect on the market.
  • Still, home buyers will have to be patient and persistent in their housing search.

Disclaimer: This article speculates on future real estate market conditions based on current trends. Such views are the equivalent of an educated guess and should be treated as such. No one can predict future housing trends with complete accuracy.