What is Inventory and Why Does It Matter?

Real estate inventory refers to the number of homes available for sale at any given time. It’s a fundamental driver of market dynamics because of the classic rule of supply and demand:

Low inventory + High demand = Higher prices

High inventory + Low demand = Lower prices

In recent years, especially during 2020–2022, the U.S. housing market experienced record-low inventory levels—2021 marked the lowest since 1983! With so few homes available, intense competition drove prices sky-high and created what Roxanne colorfully describes as the Hunger Games of home buying.

A Look at the Numbers

2021: 2.3 months supply of inventory (nationally); in Colorado, this was as low as 3 weeks!

2023: Around 3.7 months supply, showing a gradual increase but still below a balanced market.

2024 (Projected): Similar to 2023, with 3–4 months of inventory—still a seller’s market, but with increasing competition.

A balanced market is typically defined as having about 6 months of inventory, where neither buyers nor sellers have a distinct advantage.

What This Means for Sellers

While the market is technically still in favor of sellers, the tide is slowly shifting:

More listings = more competition.

It’s becoming essential to position your property effectively to stand out.

Well-maintained, competitively priced homes are still selling quickly and at strong prices.

As Keith explains, if you’re competing with three similar homes priced at $700,000, pricing yours at $690,000 might attract the most attention and spark bidding wars—ironically leading to higher final sale prices.

Positioning is Key

With inventory rising, sellers can no longer rely on homes selling instantly. Roxanne and Keith stress the importance of:

Condition: Homes must show well and be in good repair.

Pricing: A strategic price can boost attention and competition.

Presentation: First impressions matter more than ever.

In Roxanne’s words: “If the house is well-priced, in good condition, and looks great—it will still behave like a strong seller’s market property.”

Final Thoughts (and a Little Humor)

In true Honest Hour fashion, this episode wasn’t all charts and strategy—there were jokes, laughs, and even a running gag about “farts in the corner” to underscore what happens to listings that don’t stand out. As inventory grows, some homes will simply sit—unsold and overlooked.

So how do you avoid becoming that listing?

Proper positioning, professional support, and knowing your competition.

Stay Tuned

Roxanne and Keith have a whole series on all things real estate related. If you’re a buyer, or seller, or simply love real estate insights delivered with personality, make sure to subscribe and follow along.

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