You may have heard that the number of homes for sale isn’t growing quite as quickly as it was earlier this year. If you’re planning to buy, you might be wondering if that means fewer options are ahead.

The good news? Inventory is still growing, and there are signs that more homes could be coming to market.

Here’s what that could mean for buyers as we head into the rest of 2026.

Inventory Growth Has Slowed - But It Hasn’t Stopped

According to Realtor.com, active listings were up 2.1% year-over-year in July. That’s down from earlier in the year - inventory was up 10% in January and 31.5% in May 2025.

So yes, the pace has cooled. But that doesn’t mean inventory has stopped growing.

In fact, the past three months have all shown inventory growth in a similar range, which could be a sign that the slowdown is beginning to level out.

And that’s encouraging.

Every bar on the graph represents a period when inventory grew. So while the pace may not be as fast as it once was, homes are still coming onto the market.

For buyers, that means there are still opportunities to find the right home. And with the numbers becoming more consistent, there may be a little more stability heading into the months ahead.

We’re Seeing More Homes for Sale Than We Have in Years

There’s another part of the inventory story worth keeping in mind.

Compared with the incredibly low inventory levels we saw in 2021, the number of homes for sale has increased significantly. National inventory has now been up year-over-year for 33 consecutive months, and inventory has nearly doubled over the past few years.

Even better, this July had the highest inventory level for the month since 2019.

That puts the market much closer to what we would consider a more typical level of inventory.

There’s still a gap of roughly 150,000 listings compared with pre-pandemic levels, but we’re getting closer to normal. Some experts even expect inventory to return to 2019 levels by the end of this year.

And one surprising factor could help make that happen: mortgage rates.

Why Higher Rates Could Actually Help Inventory Grow

It might seem counterintuitive, but mortgage rates and housing inventory can have an interesting relationship.

When rates rise, inventory can rise along with them. And when rates fall, some homeowners may be more inclined to stay put, especially if they currently have a much lower mortgage rate.

As Mike Simonsen, Chief Economist at Compass, explains:

“When rates rise; inventory rises. When rates fall; inventory falls. So, from July last year to March this year, rates ease lower and all the inventory growth of the past several years evaporated. If rates move higher from here or stay elevated for [a] longer period of time, then we should expect supply to build again.”

Mortgage rates are expected to remain in the mid-to-upper 6% range for a while longer. Realtor.com’s latest forecast projects inventory to finish 2026 3.6% higher than it was last year.

That points to two encouraging trends:

Inventory growth could pick up a little throughout the rest of the year.
Inventory could finish the year around historically normal levels, close to where it was in 2019.

What Does This Mean for Buyers?

For buyers, more inventory is a good thing.

Even if today’s mortgage rates aren’t exactly your favorite, a larger supply of homes can create more opportunities to find a property that actually fits what you’re looking for.

More homes on the market can mean:

More choices
More opportunities to find the right fit
More room to compare your options
Potentially more negotiating flexibility
Less pressure to rush into a decision

Of course, real estate is always local. National housing trends can give us a helpful snapshot, but what matters most is what’s happening in your specific market and neighborhood.

That’s where having a local real estate team can make a difference. At the Price Group, we’re constantly watching inventory, pricing, buyer activity, and what’s happening across the communities we serve so our clients can make decisions with a clear picture of the market.

More Inventory Means More Possibilities

The housing market doesn’t have to change overnight to create better opportunities.

Inventory is still growing, the pace appears to be stabilizing, and forecasts suggest we could see even more homes available as we move through the rest of 2026.

So if you’ve been waiting for more options, this is a trend worth watching.

And if you’re curious about what inventory looks like in your New Jersey town, we’re always happy to take a closer look with you.

At the Price Group, we believe the best real estate decisions start with understanding the market - and knowing how the bigger picture applies to your next move.