More Homes, More Choices: Why Inventory Growth Could Shift the Real Estate Market This Summer

When you’ve been in real estate long enough, you learn to read the signs—and right now, the signs are pointing to a market in transition. Over the past six months, I’ve watched housing inventory steadily climb. Back in January, we were seeing around 4,200–4,300 active listings. Today, that number is over 6,200. That’s not a spike—it’s a trend. And it means buyers are finally getting more options, while sellers are starting to face stiffer competition.

So what happens when inventory goes up? A couple things. First, buyers get some breathing room. We’re seeing homes sit on the market a little longer, which gives buyers more time to make decisions and puts pressure on sellers to adjust pricing. If this inventory climb continues through the summer, we could be looking at price reductions becoming more common—especially for homes that are overpriced or in less-than-perfect condition.

Now, let’s talk rentals. People often ask, “If there’s so much housing out there, why is rent still so high?” And the answer is simple: availability isn’t the same as affordability. A lot of what’s coming on the market isn’t entry-level pricing. But as more unsold homes shift into the rental market, we could see rental supply increase too—and that might eventually help cool rental prices, at least in some areas.

Mortgage rates are also something to keep an eye on. Over the last two weeks, we’ve seen rates tick up by about a quarter of a point across the board—15-year, 30-year fixed, FHA, VA loans, you name it. That’s not a huge jump, but for buyers who are watching their budget closely, every quarter-point matters. It affects monthly payments, it affects affordability, and ultimately, it affects how fast homes move.

Now, for those who are curious about what’s actually on the market, here are a couple properties that caught my eye. In Ocean Beach, we’ve got a one-bedroom, one-bath condo that’s perfect for a first-time buyer or a downsize move. It’s a top-floor corner unit with 600 square feet, triple-pane windows, an updated kitchen, in-unit laundry, and even a private one-car garage. It’s listed in the $475,000 to $550,000 range with a $332/month HOA fee.

And for those dreaming a little bigger, there’s a standout luxury property in Sunset Cliffs. This one’s a showstopper—over 5,000 square feet with six bedrooms, five baths, and a nearly 900-square-foot guest casita above a three-car garage. It has a newly remodeled kitchen, oversized bedrooms, and panoramic ocean views that are hard to beat. Price range? Between $5.1 and $5.9 million.

Summer is traditionally a busy time in real estate, and this year is no different. But the dynamics are shifting. Whether you’re looking to buy, sell, or rent, it’s more important than ever to understand where the market’s headed. Inventory levels, interest rates, and pricing strategies are all in motion, and staying informed is your best move.

If you’re thinking about making a move this season—whether that’s upgrading, downsizing, or investing—now’s the time to get serious and align with a strategy that fits your goals. The more you know, the better decisions you’ll make.