On Oct. 28, single-family housing inventory reached a peak of 577,172, but by the final week of 2022, that total fell to 490,809, and seasonality may not be the only driving force of a sudden supply drop, according to HousingWire. A recent inventory decline coincides with seven weeks of positive purchase application data, suggesting an uptick in buyer demand possibly driven by a slight drop in mortgage rates at the close of 2022.
Total housing inventory remains historically low at the start of the new year, but elevated mortgage rates will prevent prices from skyrocketing even as demand makes a 2023 comeback.
It’s now 2023 and total inventory is low by every measure of the existing home sales market. On a historical basis using data from the National Association of Realtors, total inventory has the capacity over the next two existing home sales reports to break under 1 million.
If this happens, it will be only the second time in recent history that we start a calendar year below 1 million active listings.
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