Inventory Nears Normal, Growth Slows

Housing inventory growth slowed in 2026 because listings already rebounded from record lows, making further yearly gains harder without weaker demand or much stronger new supply.
Current active listings sit near 1.36M. The analyst said a healthy market works with 1.52M-1.93M listings and >4 mo of supply.
Last year’s peak inventory growth hit ↑33%, but that came off a much lower base. As inventory normalized, matching that pace became much tougher.
Mortgage rates stayed above mid-6% for most of the current year. The analyst said lower rates make inventory growth harder in this market.
Existing home sales had gone nowhere for years, yet inventory climbed from record-depressed levels toward normal, helping keep prices in check as wages outgrew prices.