The past few years have been challenging for homebuyers, especially with higher home prices and mortgage rates. If you’re trying to buy a home, it’s easy to worry you won’t find something in your budget.

But here’s what you need to know: the number of homes for sale has grown a whole lot lately and that’s true for both existing (previously lived-in) and newly built homes. Here’s a look at those two bright spots for buyers and why they might make it a bit easier to find the home you’ve been looking for.

1. There Are 22% More Existing Homes for Sale 

Data from Realtor.com says the number of existing homes for sale improved by an impressive 22% in 2024. And experts say your pool of options is expected to get even better this year. Forecasts show inventory is projected to grow another 11-15% by the end of 2025 (see graph below):

If you haven’t found a house with all the features you need, this is good news: as the number of homes for sale grows, you’ll have more options to choose from. That means a better chance of finding a home that checks all your boxes. As Ralph McLaughlin, Senior Economist at Realtor.com, says:

“It could be a particularly good time to get out into the market . . . you’re going to have more choice. And that’s not something that buyers have really had much over the past several years.”

2. There Are More Newly Built Homes on the Market

According to data from the Census and the National Association of Realtors (NAR), 31.1%, or roughly 1 in 3, homes on the market right now are newly built. That’s more than the norm (see charts below). But don’t worry, that’s not because builders are overdoing it – they’re just trying to catch up after years of underbuilding.

And the best part is, since builders have been focusing on smaller homes with lower price points, new builds might be less expensive than you’d expect. A lot of people write off new construction because it’s easy to assume the costs are higher, but lately that price gap isn’t as big as you’d think. As CNET says:

“If you live in an area where there’s a lot of new construction happening . . . you might be able to purchase a new house for a price similar to or even less than a pre-owned one.”

If you haven’t been able to find a home within your budget, it’s time to ask your agent about new builds. If you don’t, you may have been cutting your pool of options by about a third.

Bottom Line

More choices could be the key to unlocking your homebuying goals in 2025. Reach out to see what’s available in and around Stillwater, Minnesota.