More Homes on the Market Doesn’t Always Mean a Crash Is Coming

You may have heard recently that the number of homes for sale has hit a new high — and if you remember the 2008 housing crash, that news might raise a red flag.

I get it. It’s natural to wonder if more inventory means trouble ahead. But let me just say — this is not the same situation we saw back then. In fact, what we’re seeing can be a healthy sign that the market is finding its balance again.

What’s Really Going On with Inventory?

According to the latest numbers from Realtor.com, housing inventory is the highest it’s been since 2020 — and that’s catching people’s attention.

But here’s what you need to understand: even though inventory has grown compared to the last few years, we’re still well below the typical levels we saw before the pandemic. Take a look at this chart from Realtor.com, and you’ll see the white line (current inventory) hasn’t even reached the gray area (pre-2020 norms):

So yes — more homes are hitting the market, and that’s a good thing. But we’re nowhere near an oversupply.

Why This Isn’t a 2008 Repeat

I talk to a lot of clients who hear “rising inventory” and immediately think back to 2008 — when the market was flooded with homes and prices tanked. But today’s housing market is fundamentally different.

The big reason? We’re not facing a surplus of homes — we’re still digging our way out of a long-term shortage.

Check out this chart. The red bars show how far behind new home construction has been for years now — going back to 2012:

We simply haven’t built enough homes to keep up with the number of people who want to buy. And that’s created a huge housing gap. Realtor.com estimates that at our current pace of building, it would take 7.5 years to close that gap.

That’s why even with more homes on the market right now, there’s no sign of oversupply. Quite the opposite — most areas we serve still need more homes just to meet demand.

What This Means for You

As someone who’s been working and watching the market day in and day out, I can say: this is not a crisis — it’s a correction. We’re moving toward a more balanced market, where buyers have more choices and sellers still have solid opportunities.

Rising inventory means more options for buyers and a return to more realistic pricing and timelines. That’s not a bad thing — that’s a healthier housing market.

Bottom Line

Don’t let the news scare you. Yes, inventory is rising — but no, that doesn’t mean a crash is coming.

If you’re thinking about buying or selling, let’s connect. I’ll walk you through what’s happening right here in our local market and help you make a smart move with confidence.