Navigating market changes as inventory rises

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Published Date 3/12/2025

It seems buying a home is no longer the formula it once was. Mortgage rates have remained uncomfortable and list prices skyrocketed then came to a halt. This was followed by competition going from super stiff to almost nonexistent. With all this change, how do you keep up?

Realtor.com’s Jillian Pretzel says things may be looking up for buyers lately, although you might have to blink a few times to see the subtle benefits of what’s going on. She lists a few old rules that no longer apply to the current real estate market—plus new ones that will take their place this year.

The first is that when housing inventory is low, it’s best to have an open mind, but don’t give up on all your dreams. “There are more homes on the market; you have plenty of options,” she says. “Real estate inventory has been sparse in recent years, but new listings and active listings have been increasing since the beginning of the year. In fact, a recent report found that the number of for-sale homes is up a whopping 27.6% from this time last year.”

She compared the current market with last year’s and found that the inventory of homes for sale increased in all of the largest metros, according to Realtor.com. Markets with the most inventory growth were Denver (+54.8%), Las Vegas (+49.4%), and Tucson (+45.0%), and those numbers grew in February. “There were 27.5% more homes actively for sale on a typical day in February compared with the same time in 2024, marking the 16th consecutive month of annual inventory growth.”

That being said, Realtors everywhere still advise their clients not to settle for a property if it doesn't tick off all their boxes.

The old rule is that there is little room for negotiation with sellers. The new one? With few buyers in the market, most sellers are willing to negotiate.

While house shopping in 2020 and 2021 had buyers facing fierce competition, with packed open houses and even unrenovated homes fetching multiple offers, things are different now. “These days, there aren’t a ton of buyers, partly due to high mortgage rates,” she tells us agents are reporting to her, with rates where they are, there’s often less buyer competition, which can open up opportunities to negotiate better terms, such as asking for repairs, furniture, and home cleaning costs.

Fewer buyers mean more deals to be made as homes are sitting on the market longer than they were in the past.

Another old rule? Homes are selling fast—so make an offer ASAP. No more. Homes are on the market longer, so take time to consider your options. Days on market (DOM) shifted to nearly a week longer than at the same time in 2024, says Pretzel.

As for that old rule telling you to wait because mortgage rates will drop soon? Nope. Rates are expected to stay about the same, so don't wait for better numbers, Realtor’s 2025 Housing Forecast predicts mortgage rates to be “slightly lower” than they were last year, but the difference is almost negligible. Of course, this is all relative. Rates for some might be acceptable, but for others they may be overwhelming. In areas where housing prices are low, rates might be manageable, But in pricier areas, they appear astronomical.

And Pretzel’s last rule change was that “date the rate, marry the house” adage. The new rule is to find a home you like and can afford now, without the hope to refinance any time soon. Even if rates drop, a refinance might not make sense when you add up the fees and up-front costs.

Pretzel reminds us that if rates go way down in the next few years and you can refinance, more power to you. Otherwise, at least you’re building equity now.

Realtor, TBWS

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