Property Listings Were Up in June: Good News for Buyers

A lack of housing inventory has been hurting buyers. In June, those numbers took a turn for the better.

The shortage of available homes on the market is causing prospective home buyers a lot of stress. A lack of properties available for purchase has led to an uptick in demand and caused home prices to soar, leaving many buyers out in the cold.

But in June, housing supply increased. New listings rose 5.5% compared to the previous June, and, just as importantly, they increased 10.9% compared to May, according to Realtor.com.

Of course, the real estate market still needs a lot more homes to give average buyers a fighting chance. This past June, there were 415,000 fewer homes for sale than there normally would be on a typical day that month. But still, June inventory marks an improvement from March, April, and May, and if more listings continue to hit the market, things could start to cool off from a home price perspective.

How to navigate today's market

Many buyers refuse to give up on today's real estate market for one big reason. Mortgage rates continue to be very competitive on a whole, and buyers don't want to miss out on the opportunity to lock in an affordable home loan for what could be a 30-year repayment period.

Still, today's market is challenging for buyers. A continued lack of inventory means the few homes that are available to purchase are winding up in bidding wars, where potential buyers duke it out in the hopes of being able to one-up each other in terms of price.

Adding to buyers' frustration is the glaring lack of starter homes on the market, coupled with the number of buyers who are coming in and making all-cash offers on homes on the low and moderate end of the market. Most people who want to buy a home can't do so outright -- they need to finance that purchase with a mortgage. But mortgages can take time to close and may fall through, which is why buyers who need home loans are riskier for sellers than buyers who have the ability to pay cash and close immediately.

If you've been having a difficult time navigating today's housing market, it might help to narrow down your list of priorities for your new home. Rather than fixate on seven or eight key features, whittle that list down to four or five, as that might open the door to more properties.

Also, if you've been having trouble getting an offer accepted, get a pre-approval letter from a mortgage lender. Though pre-approval doesn't guarantee you a home loan, it does send the message to sellers that you're a serious buyer whose finances have already been vetted. Plus, having mortgage pre-approval can help you set a more accurate home-buying budget. This may, in turn, prevent a scenario where your love for a certain home causes you to go overboard and take out a loan you can't comfortably afford.

Today's housing market is tough for buyers, but the fact that inventory has ticked up is a positive sign. And if that trend continues, more people may have an easier time buying a home during the latter half of the year.