Rising Housing Inventory: What It Means for Buyers and Sellers

The housing market is shifting—and both buyers and sellers should take note. According to MortgageWorks’ Art Alvarez, inventory levels are climbing steadily in 2025, approaching a balanced market for the first time in years.

Locally, inventory is hovering around 4.5 to 5 months based on the current sales rate, aligning closely with the national average of 4.6 months reported in August. Not long ago, homes were selling so fast that inventory was closer to 2–3 months—a strong seller’s market.

Now, things look different. With more homes on the market, competition is heating up on both sides of the transaction.

---

For Buyers: More Choices and Negotiating Power

For homebuyers, this shift brings good news. Increased housing inventory means:

• More listings to choose from: Buyers no longer have to rush into decisions or settle for a home that “sort of” fits their needs.
  
  

• Stronger negotiating position: With more sellers vying for attention, buyers can often secure better pricing or concessions such as rate buydowns, closing cost credits, or repairs.
  
  

• Less pressure to overbid: Fewer bidding wars mean you can make decisions based on value—not panic.
  
  

In short, the market is offering moderate opportunities for buyers who’ve been waiting on the sidelines.

---

For Sellers: More Competition—and a Need to Adapt

Sellers, on the other hand, are facing a more competitive landscape. As Art explains, “You don’t just have the home builder down the street offering rate buy-downs and closing cost credits—you now have competition from other sellers of existing homes.”

That means standing out matters more than ever. Consider borrowing a page from the home builder playbook:

• Offer buyer incentives like rate buydowns or covering closing costs.
  
  

• Make small upgrades that increase perceived value—fresh paint, landscaping, or new fixtures.
  
  

• Price strategically based on local comparables, not peak market expectations.
  
  

By taking a proactive approach, sellers can attract serious buyers and stay competitive even as inventory rises.

---

The Bigger Picture: A Market Nearing Balance

Nationally, housing inventory has risen nearly 12% year-over-year, signaling a slow but steady return toward equilibrium between buyers and sellers. While we’re not in a full buyer’s market yet, the balance is shifting.

For those in the Coachella Valley and surrounding markets, this change brings opportunity—especially for buyers ready to move while rates remain relatively stable.

As Art notes, “It’s a moderate opportunity market. Buyers have leverage, and sellers need to take note of that.”

---

The Bottom Line

• Buyers: You have more choices and room to negotiate.
  
  

• Sellers: You have more competition and need to be strategic.
  
  

• Both: The market is stabilizing, and working with a mortgage professional can help you time your next move wisely.
  
  

---

Talk to a Mortgage Expert

Whether you’re buying, selling, or simply exploring your options, MortgageWorks can help you understand your financing power in today’s changing market.

???? Contact Art Alvarez and the MortgageWorks team to discuss your goals and get pre-qualified today. 760-969-5023

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.