Where the Housing Market Stands Now
Across major metros, low inventory remains the anchor dragging the market. In cities like Austin, Seattle, and Atlanta, active listings are still well below pre pandemic norms. Some areas saw a mild bump in new listings this spring but not enough to offset years of underbuilding and hesitant sellers sitting on low interest mortgages. The supply side just isn’t catching up at pace.
Despite that, buyer demand has stayed surprisingly firm. Even with mortgage rates hovering around 7%, many buyers are still jumping in driven by life changes, remote work flexibility, or just trying to get ahead of future rate hikes. Homes that are priced right and staged well are still getting multiple offers, especially in mid tier price points.
The data backs this up. According to recent figures from Redfin and Realtor.com, median days on market for most listings is under 30 in competitive regions. Meanwhile, the total number of home sales is holding steady, not crashing. The takeaway? The market remains tight, but not frozen. Buyers are adapting, sellers are slowly re entering, and everyone’s adjusting to what looks like a new normal at least for now.
The Supply Side: Still Playing Catch Up
New home construction has been off balance since the pandemic. Builders hit pause during early lockdowns, scaled back due to material shortages, then got whiplashed by rising interest rates. That momentum still hasn’t returned. Even now, housing starts remain below national need, and the gap is widening.
Permits for new builds have lagged behind demand. Builders are cautious, sitting on projects longer or delaying starts altogether. Labor shortages aren’t helping. Finding skilled crews has become a chronic challenge, especially in fast growing sunbelt metros where demand is booming but trades are stretched thin.
All of this adds up to one thing: not enough homes on the market. And when inventory is tight, prices stay high. Bidding wars may not be as wild as in 2021, but competition feels just as fierce thanks to the limited supply. Buyers are chasing fewer listings, often stretching budgets to stay in the game.
For a deeper breakdown of this inventory crunch and how it’s reshaping the buying journey, see low inventory challenges.
Demand Factors: Who’s Still in the Market
The housing market in 2024 is a collision of motivations. First time buyers are still trying to crack in competing hard for starter homes and outbidding each other with creative financing. For many, high rates and home prices mean stretching budgets or getting help from family. But the hunger is still there.
Move up buyers are a different story. Many are holding back, locked into low rate mortgages from the past few years. For them, upgrading isn’t always worth the cost of trading a 3% mortgage for a 7%. That’s keeping a lot of inventory off the market, which feeds the bottleneck.
Investors are still in the picture, but more choosy. Cash deals are common, but instant flips are riskier than they used to be. Some are switching strategy turning to long term rentals or short term vacation markets where returns are stronger.
Mortgage rate volatility has clearly shifted behavior. Some buyers pause every time the Fed speaks; others jump in fast the moment rates dip. Everyone’s watching the rates and recalculating monthly out of pocket.
Remote work continues to be one of the most persistent wildcard factors. With location less of a limit, buyers are going farther out or skipping expensive metros altogether. Popular moves include mid size cities with lower costs and livable neighborhoods. Lifestyle is driving the search in ways that used to be secondary.
Bottom line? Demand is strong, but fragmented. Motivation varies wildly depending on who’s buying and why.
What’s Making the Market So Competitive
Right now, speed is everything. Homes are moving fast some listings are lasting just days, or even hours, before landing offers. In many markets, a clean, reasonably priced home can go pending in under a week. That’s made the days on market (DOM) metric a flashing indicator: low DOM means high demand, limited supply, and buyers who are ready to move fast.
Multiple offer situations are no longer the exception. Bidding wars, escalation clauses, and pre inspections are back in regular rotation, especially for well located homes in move in condition. With inventory still low, too many buyers are chasing too few listings, and that drives a scarcity mindset.
Buyers are adjusting. Some are widening their search radius, looking at fixer uppers, or locking in pre approvals ahead of time. Others are skipping contingencies not ideal, but sometimes necessary to compete. Strategy has replaced spontaneity. If you’re a buyer in a hot market, showing up unprepared just won’t cut it.
And behind it all: low inventory challenges. The supply crunch keeps pressure high, and until more properties hit the market, competitiveness isn’t cooling off.
What to Watch in the Months Ahead
The question on everyone’s mind: When will more homes hit the market? Builders are still cautious, weighed down by high costs and uncertain returns. But if supply chains continue to smooth out, and material prices stop spiking, we could see a modest bump in new construction later this year. Keep an eye on regional permitting data it’s often the first signal of future inventory.
If interest rates cool off or even inch downward, buyer demand could ramp up. That would create another squeeze unless inventory keeps pace. Right now, affordability is acting like a pressure valve keeping some buyers on the sidelines. A rate dip could pull them back in fast.
Policy is the wildcard. Cities that streamline zoning, reduce red tape, or offer incentives for multi family or infill development may see supply move faster. But these changes won’t fix things overnight. It’s a long game, and localized. Federal policy gets the spotlight, but what happens at the city planning level may matter more.
In a market this tight, small shifts can ripple big. Builders, buyers, and policymakers all have a role to play and everyone should pay attention to what’s happening next.
Key Takeaway for Buyers and Sellers
For buyers, the game isn’t about finding the perfect home it’s about staying sharp and being prepared. In a tight market, speed and flexibility beat wish lists. Get pre approved. Understand what tradeoffs you’re willing to make. When the right place hits, hesitation costs you. Work with an agent who knows the local pulse and can help you move fast without second guessing.
For sellers, advantage leans your way but only if you play it right. Just because supply is low doesn’t mean you can ignore what buyers want. Pricing too high can stall offers. Pricing smartly right at market value often sparks competition and leads to better deals. Keep your staging clean, your photos pro, and your response time quick.
Bottom line: whether you’re buying or selling, knowledge is leverage. Markets this lean shift fast. Staying plugged into the data, the trends, and the local temperature can mean the difference between frustration and success.
Ron Wilson has played a vital role in the establishment of Villa Estates Luxe, bringing his expertise in property management and investment strategies to the project. His guidance has been invaluable in developing comprehensive buying guides that empower potential villa owners to make informed decisions in a competitive market. Ron's in-depth knowledge of market dynamics has informed the platform's analysis and reporting, allowing users to navigate complex real estate trends with confidence. His commitment to excellence and dedication to educating clients have not only enhanced the platform’s credibility but have also established Villa Estates Luxe as a go-to source for industry insights and investment strategies in the luxury villa sector.