More Homes on the Market Isn’t a Red Flag: It’s an Opportunity

If you’ve been noticing more homes on the market this year, you’re right: inventory is increasing. You also might be wondering if this rise in inventory means something is wrong- or even if we are headed for a crash.

In reality, today’s rising inventory is a positive sign- both for the health of the market and for buyers who’ve been waiting for more options. And in Portland, where tight inventory has been the norm for years, this shift is especially worth paying attention to.

What’s Behind the Rise in Inventory?

Across the U.S. and here in Portland, we’re seeing more listings hit the market than we have in recent years. Some of this is due to what experts are calling “rate fatigue.” Many homeowners who’ve been sitting on the sidelines waiting for interest rates to drop are can’t wait any longer.

Whether it’s a growing family, job change, or downsizing needs, people are choosing to move forward despite rates, and that’s driving more new listings. More homes mean more choice, less pressure, and a chance for buyers to find something that fits without the bidding war.

No, This Isn’t 2008 Again

Let’s clear something up: more homes for sale does NOT equal a market crash.

Back in 2008, we had a surplus of homes and a wave of risky lending practices. Today, we have the opposite- a long-standing housing shortage. And while it’s true inventory is up significantly compared to where it was over the last few years, the number of homes on the market is still well below typical levels.  Even with inventory rising, we’re still playing catch-up after over a decade of underbuilding. Nationally and locally, we are nowhere near having “too many homes.”

What It Means for Prices and Buyer Power

More inventory has another upside: it helps ease the pressure on home prices. Slower price growth means you won’t be chasing the market up as aggressively, and if mortgage rates dip slightly (as some experts predict), your buying power could increase in the months ahead.

Key Takeaways:

• Sellers are re-entering the market, and inventory is expected to continue rising this year.
• More homes for sale means more options and flexibility.
• Price growth is moderating, and rate relief may be on the horizon, improving affordability.
• We’re not in a bubble; we’re moving toward a healthier, more balanced market.