Under four months: that is how long it would take to sell every home that is currently on the market. Home production is up, but low inventory and high demand continue to keep prices high. The housing shortage is impacting cities across the nation, but some have it worse. Find out which surprising cities are feeling the heat.
At the end of October, inventory nationwide fell to a 3.9-month supply, according to the National Association of Realtors. The means that at the current sales pace it would take that long to sell all of the 1.77 million homes available for sale.
A 6-month supply is generally the sign of a healthy market, balanced between buyers and sellers.
Inventory has been falling annually for five straight months, after it recovered slightly toward the end of last year, due to a spike in mortgage rates. Rates began falling again by spring of this year. Homebuilders have been increasing production slowly, but it’s not enough to meet the increasingly strong demand.
