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What is Existing Home Inventory?

Written by Dan Green

Dan Green

Since 2003, Dan Green has been a leading mortgage lender and respected industry authority. His unwavering commitment to first-time home buyers and home buyer education has established him as a trusted voice among his colleagues, his peers, and the media. Dan founded Homebuyer.com to expand the American Dream of Homeownership to all who want it. Read more about Dan Green.

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Updated: January 21, 2024

What is Existing Home Inventory?

Existing Home Inventory is the count of previously owned homes available for sale at a given time.

TABLE OF CONTENTS

Existing Home Inventory: A Detailed Explanation

Existing Home Inventory is the number of pre-owned residential properties listed for sale at a given moment. Existing Home Inventory is a national aggregate and includes all residential property types: detached homes, condos, co-ops, townhomes, and multi-unit properties, including 2-unit, 3-unit, and 4-unit homes.

Homes with more than four units are excluded from the home inventory count because homes with 5 units or more are considered commercial properties, and new home sales are excluded, too.

The home inventory data is compiled and published monthly by the National Association of REALTORS® as part of the more extensive Existing Home Sales report, which provides a broader insight into the overall health and activity of the residential real estate market.

How is Existing Home Inventory Calculated?

Existing Home Inventory is calculated by counting the number of pre-owned residential properties listed for sale via the Multiple Listing Service at the end of a specific month. The comprehensive count includes listings across all residential property types. It does not include new construction homes that have never been lived in.

Existing Home Inventory: Chart

Homebuyer.com uses the FRED® API but is not endorsed or certified by the Federal Reserve Bank of St. Louis.
Data: National Association of REALTORS. Do not reprint without permission.

Common Questions About Existing Home Inventory

Does home inventory impact home prices?

Assuming steady demand from active home buyers, a reduced inventory of homes for sale should lead to higher home prices because of increased competition. The reverse is also true: rising supply amid steady demand should lead home prices down.

How often is Existing Home Inventory data updated?

The national home inventory is counted and published monthly as part of the broader Existing Home Sales report from the National Association of REALTORS®.

Can Existing Home Inventory predict future real estate market trends?

The availability of homes for sale can provide insights into buyer and seller behavior, but home inventory levels are not a standalone predictor of future market trends.

How do seasonal trends affect home inventory?

Historically, home buyers see larger home inventory in the spring and summer months and lower home inventory in the fall and winter. In some years, this pattern breaks.

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