Will October's Inventory Peak Hold in November?

October is typically the month when housing inventory peaks, and this year is no exception. However, with mortgage rates stubbornly high, buyers are backing off and inventory is rising. This could mean that inventory keeps growing in November, albeit at a slower pace.

There are a few reasons why inventory may continue to rise in November. First, new listings volume is already suppressed this year, and it tends to grow even thinner once we hit November. Second, buyers are being deterred by high mortgage rates. In fact, affordability has hit a 15-year low.

However, there are also some factors that could prevent inventory from growing too much further in November. First, the number of homes for sale is already at a four-year high. Second, sellers are still motivated to sell, even in a rising rate environment. This is because home prices have been rising steadily for the past few years, and sellers are looking to lock in their profits.

Overall, it is likely that inventory will continue to rise in November, but at a slower pace than we have seen in previous months. The peak inventory level for the year has likely already been reached in October.

Here are some additional thoughts:

1. It is important to note that the housing market is regional. Inventory levels and buyer demand can vary significantly from one market to another.
2. Buyers who are serious about buying a home should not be discouraged by high mortgage rates. There are still many ways to qualify for a loan, even if you have a smaller down payment or less-than-perfect credit.
3. Sellers who are considering putting their home on the market should price it competitively and make sure it is in good condition. This will help to ensure that it sells quickly and for a good price.