Key Takeaways
- Low home inventory often increases property prices, benefiting sellers.
- High inventory usually provides better deals and options for buyers.
- Inventory is counted monthly by the National Association of REALTORS®.
- Listings exclude new homes and properties with over four units.
Article Summary
Existing home inventory is the count of previously owned homes currently listed for sale. It affects market conditions: low inventory (under 4 months supply) typically drives up prices, while high inventory (over 6 months) favors buyers.
Existing Home Inventory: A Detailed Explanation
Existing Home Inventory is the number of pre-owned residential properties listed for sale at a given moment. This inventory is calculated on a national level 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 properties with 5 units or more are considered commercial properties. Additionally, new home sales are excluded from this count.
The home inventory data is compiled and published monthly by the National Association of REALTORS®. It is part of the more extensive Existing Home Sales report, which provides insights 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 through the Multiple Listing Service at the end of a specific month. The count includes listings across all residential property types. It does not include new construction homes that have never been occupied.
Existing Home Inventory: Chart
FRED Data: HOSINVUSM495N
National Association of Realtors, Existing Home Sales: Housing Inventory [HOSINVUSM495N], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/HOSINVUSM495N, December 4, 2025.
Common Questions About Existing Home Inventory
Does home inventory impact home prices?
Assuming consistent demand from active home buyers, a reduced inventory of homes for sale tends to lead to higher home prices due to increased competition. The reverse is also true: an increase in supply with steady demand usually results in lower home prices.
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 alone do not predict future market trends.
How do seasonal trends affect home inventory?
Historically, home buyers experience larger inventories in the spring and summer months, with lower inventories during the fall and winter. However, this pattern may vary in certain years.
