Where Is the Housing Market Really Headed with More Listings on the Market?

If you’ve been keeping up with real estate news or YouTube channels lately, you’ve probably heard things like, “There are more homes on the market now,” or “Is this another 2008 crash coming?” For buyers, these kinds of headlines might make you hesitant and tempted to wait things out.

But when we take a closer, calmer look at actual market data, the picture is far more nuanced. The current rise in listings is not a sign of a market collapse—it’s a natural and even healthy step toward a more balanced and stable housing market.

Yes, Inventory Is Up—But Context Matters

According to recent data from Realtor.com, we now have the highest number of active listings since 2020. The white line in the graph shows current inventory, while the gray line represents pre-pandemic averages. Yes, inventory has increased compared to the peak of the pandemic.

However, we’re still below the levels we used to see before COVID. In other words, even though it may feel like there are more homes for sale, we are still technically in a housing shortage. So buyers might feel like the market is saturated, but in reality, we’re not quite there yet.

This Is Not 2008

Hearing that inventory is rising might make some people worry about a repeat of the 2008 housing crash, when a flood of listings caused home prices to plummet.

But today’s situation is very different. The current increase in listings isn’t due to overbuilding or oversupply—it’s because we’re finally starting to close the massive supply gap that has existed for years.

Since 2012, the U.S. has consistently built fewer homes than needed to meet demand. The pandemic only worsened this trend, with supply chain issues and rising construction costs limiting new home starts. According to Realtor.com, the U.S. still needs about 7.5 years of continued homebuilding to fully meet demand.

What About Chicago and Illinois?

In areas like the northern suburbs of Chicago, DuPage County, and parts of Cook County, we’ve seen a modest rise in listings over the past few months. But many buyers still struggle to find homes that meet their criteria. And when a well-priced home in good condition hits the market—it still sells quickly.

In high-demand areas like Naperville, Glenview, Northbrook, and Vernon Hills, buyer demand continues to outpace supply. As a result, home prices remain stable or are even inching upward.

Bottom Line: More Listings = More Opportunity

This isn’t a crash. It’s a reset. The rise in listings we’re seeing now signals a return to a healthier, more balanced market. For buyers who’ve been sidelined by extreme competition or lack of options, now may finally be your chance.

The real question isn’t if you should act—it’s when. Waiting often leads to more reasons to wait. But buyers who act early are the ones who get the best picks.