Inventory Is Making a Comeback

If you’ve been sitting on the sidelines of the real estate market over the last few years, you know the struggle. It’s been a long stretch where buyers were constantly competing for too few homes. But as we move through 2026, I have some encouraging news: inventory has made a significant comeback over the past year.

Depending on where you’re looking, this shift is opening up your options in a very meaningful way. According to Realtor.com, the number of homes available for sale this January was the highest it’s been since 2020.

Getting back to these pre-pandemic levels is a huge deal because it signals a slow and steady return to what we consider a "typical" market.

The Shift Toward a Balanced Market

While we haven't quite reached pre-pandemic levels nationally, and a simple increase in inventory won't "fix" every market challenge overnight, the growth we’re seeing is changing the "feel" of the industry.

For years, the market felt rushed, stressful, and even intimidating because there simply weren't enough houses to go around. When there are more homes for sale, buyers gain time, options, and leverage.

A Local Perspective on "Normal"

Inventory growth varies significantly depending on where you live. Some areas are bouncing back much faster than others. Lance Lambert, Co-Founder of ResiClub, noted that in January 2025, only 41 of the 200 largest metros had returned to normal inventory levels.

Fast forward to the end of last year, and almost half (90) of those top 200 metro areas were back at or above typical levels. That is a massive improvement in just twelve months, and the trend is expected to continue 

Looking Ahead: More Growth on the Horizon

The forecasts for the remainder of 2026 are optimistic. Experts suggest the number of homes for sale could rise another 10% this year, which would bring many more markets back to a healthy supply level.

As the graph below illustrates, that projected growth (the dotted line) could bring us back to 2017–2019 inventory levels by this fall.

Hannah Jones, Senior Economic Research Analyst at Realtor.com, sums up the situation perfectly:

“. . . housing market conditions are gradually rebalancing after several years of extreme seller advantage. Buyers are beginning to see more options and modest negotiating power as inventory improves . . . ” 

The Bottom Line

We aren't fully "back to normal" in every single neighborhood yet, but the needle is moving in the right direction. If you’ve been waiting for a moment where you actually have breathing room and a variety of homes to choose from, this is the strongest setup for buyers we've seen in a long time.

If you want to know exactly how these inventory shifts are impacting our local market here in Barrington and the surrounding suburbs, let's talk.