For several years, one of the biggest challenges in the housing market has been simple:

There weren’t enough homes for sale.

Buyers were competing for a limited number of listings, which often led to multiple offers, bidding wars, and very fast-moving transactions.

But that dynamic is starting to shift.

Inventory — the number of homes available for sale — has been steadily improving over the past year. And that change is beginning to open up more options for buyers.

 

The Highest Inventory Levels Since 2020

According to Realtor.com, the number of homes available for sale in January was the highest it’s been since 2020.

That doesn’t mean we’re suddenly back to a perfectly balanced market everywhere. But it does signal that supply is gradually returning toward more typical levels.

For buyers, more inventory means:

• more choices

• less pressure to rush decisions

• a little more negotiating power

And after several years of extremely tight supply, even small improvements can make a noticeable difference in how the market feels.

 

More Markets Are Returning to Normal

Inventory recovery hasn’t happened evenly across the country.

Some markets are seeing supply return faster than others.

But the overall trend is encouraging.

In early 2025, only 41 of the 200 largest metro areas had inventory levels that were considered back to normal.

By the end of the year, that number had grown to 90 markets — nearly half of the country’s largest housing markets.

That’s a significant shift in just one year.

 

Inventory May Continue Growing

Forecasts suggest this trend may continue.

Some projections indicate the number of homes for sale could grow another 10% this year, which would push inventory closer to the levels we saw between 2017 and 2019.

Here’s a graph that shows what an extra 10% would do for the market this year. You can see that projected growth (shown in the dotted line) hits inventory levels seen in 2017-2019 by roughly this fall (the gray lines). That means we may reach normal by end of year, nationally:

If that happens, the housing market may begin to feel much more balanced.

As housing economist Hannah Jones from Realtor.com explains, the market is gradually rebalancing after several years of extreme seller advantage, giving buyers more options and modest negotiating power.

In other words, the market is starting to work with buyers again instead of against them.

 

What This Means for Buyers and Sellers

For buyers, increasing inventory can make the search process less stressful.

Instead of feeling rushed into a decision, buyers may have the opportunity to compare more homes and negotiate more confidently.

For sellers, it’s an important reminder that pricing and preparation matter more as competition grows.

When inventory was extremely tight, almost any well-priced home could attract strong interest.

As more homes hit the market, buyers naturally gain more options — which means sellers need to be strategic about how they position their home.

 

Bottom Line

Inventory isn’t fully back to normal everywhere yet.

But it’s moving in the right direction.

After several years of extremely limited supply, the housing market is beginning to rebalance — giving buyers more options and creating a healthier market overall.

If you’re curious how these trends are affecting the local North Jersey market, we’re always happy to walk through the numbers and help you understand what it means for your next move.