Inventory, which has been falling for years, broke to all-time lows in 2020. We didn’t have a seasonal push in inventory in 2020, and things worsened in 2021. To top it all off, we started 2022 at all-time lows, forcing bidding action everywhere until mortgage rates rose. And we aren’t talking about your grandfather’s mortgage rates rising; we went from 2.5% to over 7% in a very short period of time.
As inventory has increased and buying power has faded, the buyers who are available are dealing with a lot less competition as the bidding wars are ending.
