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7 Ways Buyers Can Benefit From Rising Housing Inventory

By Maurie Backman - Oct 27, 2022 at 10:10AM
The front of a charming house.

7 Ways Buyers Can Benefit From Rising Housing Inventory

The home supply is picking up

The U.S. real estate market has sorely lacked inventory since the latter part of 2000. And that's been a real problem for buyers. But over the past few months, inventory has picked up. And if that trend continues, buyers could benefit for these reasons.

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Couple house hunting with a real estate agent.

1. There won't be as much pressure to make an immediate offer

The more homes available for sale, the more time you can take to decide whether to make an offer. In markets that are sorely lacking inventory, buyers often have to make an offer the moment they view a home if they want a chance at getting to purchase it. But if inventory picks up, buyers will be able to think things through without the fear of missing out.

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A for sale sign that says Sold With Multiple Offers.

2. Bidding wars could decrease

The more homes there are on the market, the less likely you'll land in a scenario where you're forced to duke it out with multiple buyers over the same property. Bidding wars can be not only stressful but also expensive. And they commonly drive up home prices, so avoiding them is a good thing.

ALSO READ: Almost Half of Home Buyers Fear Bidding Wars. Here's How to Win One

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A suburban street with numerous houses for sale.

3. Home prices could fall

Any time there's not enough supply of a given commodity to meet the demand for it, the price of that commodity is apt to rise. That's why home prices are so high these days. But if housing inventory picks up, home prices should start to go back down as supply catches up with demand.

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A modern kitchen with recessed lighting and big open windows.

4. Finding your dream home could become easier

Buyers today often have to compromise in the course of buying a home. But as inventory increases, you may find that you're more likely to find your dream home -- a property that truly checks off all the right boxes. That could mean getting to move in right away without having to deal with renovations.

ALSO READ: Renovating Your Home? Prepare for This Hidden Cost

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Young couple in front of a house.

5. You'll enjoy more bargaining power

When housing inventory is limited, sellers get the upper hand -- and they know it. But if inventory picks up nicely, you might get more negotiating power as a buyer. That could mean paying less for a home you're interested in.

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A person using a screwdriver to adjust a French door.

6. Sellers won't be able to get away with avoiding repairs

Over the past year or so, homebuyers have had to bend over backward to accommodate sellers instead of the other way around. As such, sellers have gotten away with avoiding repairs. But once inventory picks up, sellers will have to try harder to appeal to buyers -- and avoid having the interested ones walk away.

ALSO READ: Tired of Raiding Your Savings for Home Repairs? Try This Instead

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People in front of a home that is for sale.

7. The homebuying process could be less stressful overall

Ask the typical buyer what it's been like to navigate the housing market over the past year, and you'll probably get a negative response. As real estate inventory picks up, the homebuying process could become less stress-inducing. And given how important purchasing a home is, that's a good thing.

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A house with a Sold sign pasted over the top of a For Sale sign in a yard.

Buyers shouldn't lose hope

Although the supply of available homes still isn't robust enough to meet buyer demand, things have been getting better in that regard. In the coming year, inventory could increase even more. That could put buyers in a stronger position to spend less on homes and snag better deals overall.

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