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Today’s Real Estate Market Explained Through 4 Key Trends

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As we move into the second half of the year, one thing is clear: the current real estate market is one for the record books. The exact mix of conditions we have today creates opportunities for both buyers and sellers. Here’s a look at four key components that are shaping this unprecedented market.

A Shortage of Homes for Sale

Earlier this year, the number of homes available for sale fell to an all-time low. In recent months, however, inventory levels are starting to trend up. The latest Monthly Housing Market Trends Report from realtor.com says:

“In June, newly listed homes grew by 5.5% on a year-over-year basis, and by 10.9% on a month-over-month basis. Typically, fewer newly listed homes appear on the market in the month of June compared to May. This year, growth in new listings is continuing later into the summer season, a welcome sign for a tight housing market.”

This is good news for buyers who crave more options. But even though we’re experiencing small gains in the number of available homes for sale, inventory remains a challenge in most states. That’s why it’s still a sellers’ market, giving homeowners immense leverage when they decide to make a move.

Buyer Competition and Bidding Wars

Today’s ongoing low supply, coupled with high demand, creates a market characterized by high buyer competition and bidding wars. Buyers are going above and beyond to make sure their offer stands out from the crowd by offering over the asking price, all cash, or waiving some contingencies. The number of offers on the average house for sale broke records this year – and that’s great news for sellers.

The latest Confidence Index from the National Association of Realtors (NAR) says the average home for sale receives five offers (see graph below):Today’s Real Estate Market Explained Through 4 Key Trends | Simplifying The MarketFor buyers, the best way to put a compelling offer together is by working with a local real estate professional. That agent can act as your trusted advisor on what terms are best for you and what’s most appealing to the seller.

Home Price Appreciation

The competition among buyers is driving prices up. Over the past year, we’ve seen home price appreciation rise across the country. According to the most recent Home Price Index (HPI) from CoreLogic, national home prices increased 15.4% year-over-year in May:

“The May 2021 HPI gain was up from the May 2020 gain of 4.2% and was the highest year-over-year gain since November 2005. Low mortgage rates and low for-sale inventory drove the increase in home prices.”

Rising home values are a big part of why real estate remains one of the top sought-after investments for Americans. For potential sellers, it also means it’s a great time to list your house to maximize the return on your investment.

A Rise in Home Values and Equity

The equity in a home doesn’t just grow when a homeowner pays their mortgage – it also grows as the home’s value appreciates. Thanks to the jump in price appreciation, homeowners across the country are seeing record-breaking gains in home equity. CoreLogic recently reported:

“…homeowners with mortgages (which account for roughly 62% of all properties) have seen their equity increase by 19.6% year over year, representing a collective equity gain of over $1.9 trillion, and an average gain of $33,400 per borrower, since the first quarter of 2020.”

That’s a major perk for households to leverage. Homeowners can use that equity to accomplish major life goals or move into their dream homes.

Bottom Line

If you’re thinking about buying or selling, there’s no time like the present. Let’s connect to talk about how you can take advantage of the conditions we’re seeing today to meet your homeownership goals.

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For Buyers

Move-Up Buyers Are Choosing New Construction

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At some point, a house that once felt perfect just… doesn’t anymore.

Maybe you need more space.

Maybe working from home turned your dining room into a permanent office.

Maybe the layout just doesn’t match how you live now.

If your current house is starting to feel like it’s holding you back instead of supporting your life, it’s natural to think about making a move. But that brings up the next big question: once you sell, where do you go?

For a growing number of buyers, the answer is something brand new.

New Construction Is a More Popular Choice Lately

According to the National Association of Realtors (NAR), more people are buying new homes than they have in years. The latest annual data available shows 16% of homes purchased were newly built.

At first glance you may not see why that’s a big deal. But that’s actually the highest share of new home purchases in almost two decades.

Why More Buyers Are Choosing a Brand-New Construction

For many buyers, especially move-up buyers, new construction isn’t just about aesthetics. It’s about lifestyle, convenience, and peace of mind.

1. Everything Is Brand New

You’re not inheriting someone else’s projects. No wondering how old the roof is. No budgeting for a new HVAC right after move-in. No big surprises when the previous owners patch job fails. For move-up buyers who’ve been dumping money into updating their current house, that’s a win.

2. You Can Customize Before Move In

If you choose a home that’s still under construction, you could have the chance to pick the flooring, counters, cabinets, hardware, lighting, and so much more. That level of personalization can be a draw for move-up buyers like you, because it allows you to hand pick the fit and finishes you’ve been wanting for so long.

3. A Home Designed for How People Live Today

Most new construction homes are built to current building standards and buyer preferences, which means you could see built-in smart home features, better energy efficiency (which can lower utility bills), and even more modern floor plans and features. And if your layout just isn’t working for you anymore, you may find exactly what you need now in a new home.

4. Neighborhood Amenities

New developments often include shared community spaces like walking trails, parks, playgrounds, or even pools and gyms. For families and active households, that’s a big bonus to have that just a few steps out of their front door.

5. Builder Incentives

Not to mention, since there are more new homes on the market than the norm, builders are motivated to sell what they have. So, you may find they’re more willing to negotiate than you’d expect on things like price, upgrades, and more.

Bottom Line

If your current house isn’t meeting your needs anymore, don’t assume your only choice is an existing home. New construction is becoming a real contender, especially for move-up buyers who want space, features, and a home that works for how they live now.

Curious whether new construction might be a fit for you? Talk to a local real estate agent.

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For Buyers

Inventory Is Making a Comeback in 2026

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After a long stretch where buyers were competing for too few homes, inventory has made a comeback over the past year. And depending on where you live, that’s opening up your options in a meaningful way. 

According to Realtor.com, the number of homes available for sale in January was the highest it’s been since 2020. Here’s why that’s such a big deal. Getting back to pre-pandemic levels signals a slow and steady return to what’s typical:

a graph with numbers and a blue backgroundNow, it’s worth noting, nationally we’re not there yet – and having more inventory improving won’t suddenly “fix” the market. But the growth we’ve seen lately still changes how competitive the market feels.

  • When there are more homes for sale, buyers gain time, options, and leverage.
  • When there aren’t, the pressure ramps up quickly.

In the years since 2020, there weren’t enough homes for sale, and that made the market feel different. Rushed. Stressful. Intimidating.

But now it’s finally getting better.

A Growing Portion of the Country Is Getting Back to Normal

Depending on where you live, inventory growth is going to vary. Some places are bouncing back faster than others. According to Lance Lambert, Co-Founder of ResiClub, in January 2025, just a little over one year ago, only 41 of the 200 largest metros were back to normal inventory-wise. 

But around the end of year, almost half (90) of the largest 200 metro areas were back at or above typical levels. That’s a big improvement in roughly a year. And it’s not done yet. 

Inventory Is Expected To Keep Growing 

Looking ahead, forecasts suggest the number of homes for sale could rise another 10% this year, which means even more markets should join the list of places where supply has rebounded.

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:

a graph of different colored lines

And that changes your home search in a good way. As Hannah Jones, Senior Economic Research Analyst at Realtor.com, puts it:

“. . . housing market conditions are gradually rebalancing after several years of extreme seller advantage. Buyers are beginning to see more options and modest negotiating power as inventory improves . . .

In other words, the market is starting to work with buyers again — not against them.

Bottom Line

Inventory isn’t fully back to normal everywhere. But it’s moving in the right direction. And, in some areas, it’s already there.

If you’ve been waiting for a moment when you have options and a little breathing room, this is the strongest setup buyers have seen in a long time.

If you want to know what’s happening in your local market, talk to an agent.

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Buying Tips

Top 3 Reasons To Buy a Home Before Spring

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If you’re planning to buy a home this year, you may be focused on the spring market. And hoping that when spring does hit, you’ll see:

  • Mortgage rates drop a little more.
  • More homes hit the market.

But here’s what most buyers don’t realize. Buying just a few weeks earlier could mean paying less, dealing with less stress, and feeling less rushed.

Here are three reasons why accelerating your timeline over the next few weeks could actually be a better play.

1. Holding Out for Lower Rates May Pay Off 

A lot of buyers are hoping mortgage rates will fall even further. But that’s not the best strategy. Here’s why. Experts are pretty aligned on this: rates are expected to stay roughly where they are.

Forecasts throughout the industry all point to the same thing: rates are projected to be in the low-6% range this year (see graph below)

a graph of a graph showing the rate of a mortgageThat’s not a bad thing, especially if you consider how much rates have already come down. Over the past 12 months, they’ve dropped roughly a full percentage point. And for many buyers, that means affordability has already improved more than they may realize. 

So why wait a few more weeks just for more buyers to jump in and act as your competition? You already have a window right now. As Chen Zhao, Head of Economics Research at Redfin, explains:

“House hunters should know that this may be near the lowest mortgage rates fall for the foreseeable future.”

2. Spring Means More Competition + More Stress

Speaking of competition, the spring market is popular for a reason, but with popularity comes pressure. With more buyers active at that time of year, you’ll have to move faster once you find a home you like. And no one likes feeling rushed.

But buy now and you have more time to browse. Fewer people are looking, so homes sit longer.

You can see this play out in the data from Realtor.com (see graph below). In winter months, it takes an average of about 70 days for a home to sell. In spring? That drops to about 50 days. That’s a 20-day swing – and that pace is going to be more stressful.

Homes sell faster in the spring, and slower in the winter. And that can be a worthwhile perk for buyers who want to get ahead before their decisions start to feel rushed.

3. Prices Tend To Rise When Competition Heats Up

And here’s something most buyers forget to factor in. Prices usually respond to demand. So, when demand is higher, prices are too. Bankrate explains:

“Spring and early summer are the busiest and most competitive time of year for the real estate market . . . home prices tend to be steeper to reflect the increased demand.” 

In fact, data from the National Association of Realtors (NAR) shows that in 2025, buyers who purchased in the beginning of the year saved roughly $30,000–$35,000 compared to those who bought when prices peaked in the spring or early summer.

a graph with a green lineAnd let’s be honest, for a lot of buyers today, every little bit of savings helps. That’s why buying just a few weeks earlier, before prices ramp up, will be better for you and your wallet.

Bottom Line

Buying a few weeks before spring isn’t about rushing. It’s about choosing to be ahead of the curve and knowing you want more leverage, less stress, and meaningful savings.

If you’re ready and able to buy now and want to get the ball rolling, connect with a local agent.

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Copyright © 2020-2025 Mark Sincavage. All rights reserved.  
The information contained, and the opinions expressed, in these article are not intended to be construed as investment advice. Let's Talk Real Estate, Mark Sincavage, and Keeping Current Matters, Inc. do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Let's Talk Real Estate, Mark Sincavage and Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.