Housing inventory, which plummeted to record lows during the early stages of the global health crisis, has been on an upward trajectory since early 2022. Despite this increase, inventory levels remain below what they were before the onset of the crisis. The question on everyone’s mind: will this trend continue into 2025? Historical data provides some insight. In late 2005, a sharp rise in existing home inventory signaled the peak of house prices in 2006. Conversely, a significant drop in inventory in 2011 indicated the bottoming out of house prices in early 2012. These patterns suggest that inventory levels can be a crucial indicator of market health. As we look ahead, the real estate market’s direction could hinge on whether inventory continues to climb or stabilizes at current levels.
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