Inventory is one real driver of prices, but on its own it is an unreliable lever, and right-sizing that expectation matters. When affordability is what limits demand, more listings mostly give buyers more options and a better shot at finding a match, rather than mechanically forcing prices down. Housing also does not trade like a stock you can dump at any price. People need somewhere to live, which is a big reason home prices stay sticky on the upside even as supply grows. More inventory also does not lower mortgage rates directly. What makes the two look connected is a shared cause: a softening economy tends to bring more homes to market and pull rates down at the same time, so they can move together without one causing the other. A better gauge than the raw listing count is how fast homes are selling, meaning absorption or days on market. If active listings are climbing but homes still go under contract in around 60 days, prices probably are not under much pressure. If that figure keeps stretching toward 75, 90, or 120 days, that is a clearer signal of real downward pressure on price. Nobody can promise which direction prices go from here, but tracking absorption and days on market in your local area will tell you far more than an inventory headline will.