The housing market is finally seeing an increase in inventory, but with a surprising twist: the supply of newly built homes is outweighing existing homes. This unusual dynamic can be traced back to the subprime mortgage boom two decades ago. Currently, there is a 4.4-month supply of both new and existing homes, with the new home market showing a nine-month supply compared to existing homes. This shift is due to recent fluctuations in mortgage rates and the aftermath of the housing crisis in 2005. The pandemic-driven demand caused a record low supply of homes in 2021, leading to a 40% increase in home prices. Builders responded to the demand by increasing production, but the spike in mortgage rates caused new listings to stagnate. The market is now seeing a slight improvement in resale listings as mortgage rates stabilize, but there is still a unique divide between new and existing home inventory.