Understanding the Housing Inventory Trends in Southeast Pierce County

What’s Happening with Inventory Trends?

From January 2014 to June 2024, we've been closely tracking the months’ supply of inventory in the MLS area. This term refers to how long the current stock of homes would last if no new properties were added to the market. Over the past ten years, this number has fluctuated between 3.8 and 5.0 months, indicating shifts in supply and demand.

Why Does Housing Inventory Change with the Seasons?

Just like how ice cream sales spike in summer and hot chocolate in winter, the housing market experiences seasonal fluctuations:

• Summer (June – August): More houses are available because many people prefer to buy and sell homes during warmer months.

• Winter (December – February): Inventory decreases as fewer people list their homes due to holiday schedules and colder weather. (Source: National Association of Realtors)

Long-Term Trends: Are We Running Low on Homes?

Over the years, the amount of housing inventory has seen a slight decline. This means there are fewer homes available compared to the growing demand, resulting in a seller’s market. With more buyers than available properties, competition has intensified, leading to increased home prices. (Source: Zillow)

Predictions for the Future

Next 6 Months:

• Expect inventory levels to dip to around 3.5 months as we enter the winter months.

• This low supply will create a competitive market for buyers, requiring quick decision-making.

Next 1 Year:

• By next summer (2025), inventory should rise back up to approximately 4.5 months as more sellers enter the market.

• Buyers will have more options, but demand will remain high, keeping competition strong.

Next 3 Years:

• Housing inventory will likely stabilize around 4 months.

• This means the market will stay tight but predictable, making it crucial for buyers to stay prepared.

Next 5 Years:

• Expect inventory levels to hover between 3.8 and 4.2 months, maintaining a steady yet competitive market.

• Continued high demand will prevent major shifts, keeping Pierce County a seller-friendly market. (Source: Sammamish Mortgage)

Summary of Housing Inventory Trends

? Seasonal Fluctuations: Housing supply increases in summer and decreases in winter, following a predictable pattern. ? Long-Term Decline: Inventory levels are slightly shrinking over time, making homebuying more competitive. ? Future Outlook: The Pierce County housing market will remain tight, with inventory hovering around 4 months, ensuring a steady but competitive environment for buyers and sellers alike.

Stay Tuned for More Insights!

We hope this guide provides clarity on housing inventory trends in Southeast Pierce County! For more market updates, expert advice, and real-time listings, visit www.onsiteregroup.com or give us a call at 253.441.9764.

Happy house hunting!