A Tale of Two Markets: Inventory Mismatch Paints a More Detailed Picture
By Drew Saporito, Native Realtor
(Keyes Company )
The inventory of existing homes for sale in today’s market was recently reported to be at a 3.6-month supply according to the National Association of Realtors latest Existing Home Sales Report. Inventory is now 7.1% lower than this time last year, marking the 20th consecutive month of year-over-year drops.Historically, inventory must reach a 6-month supply for a normal market where home prices appreciate with inflation. Anything less than a 6-month supply is a sellers’ market, where the demand for houses outpaces supply and prices go up.As you can see from the chart below, the United States has been in a sellers’ market since August 2012, but last month’s numbers reached a new low.Recently Trulia revealed that not only is there a shortage of homes on the market in general, but the homes...
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