Inventory levels for both single-family and attached homes increased in 2024, with single-family homes growing by 14.4% and condos and townhouses by 16.3%. The pace of increase has been gradual, but steady. Several factors have contributed, the largest one being the "locked-in effect" of potential sellers being reluctant to move because they are still benefitting from the historically low mortgage rates they were able to secure. If interest rates continue to decline, inventory levels are likely to rise even more as the "locked-in effect" will begin to fade. The trends are already indicating buyers and sellers are gaining confidence in the market.
Builders are also increasingly optimistic, and industry experts expect that pent-up demand is going to drive the 2025 housing market.
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