A year ago every other article I read was about the “shadow inventory of foreclosures,” saying that when it hit the market the sky would fall. Well, the sky hasn’t fallen and inventory is very low. So low in fact, that homes are selling quickly and for higher prices.
Inventory levels are low with a 6.4 month supply of homes on the market in July. This is down 31.2 percent from a year ago, where there was a 9.3 month supply.
Lawrence Yun, NAR chief economist, said there is a clear relationship between inventory and time on market. “As inventory has tightened, homes have been selling more quickly,” he said. “A notable shortening of time on market began this spring, and has created a general balance between home buyers and sellers in much of the country. This equilibrium is supporting sustained price growth and homes that are correctly priced tend to sell quickly, while those that aren’t often languish on the market.”
Available inventory is defined as: The amount of time it would take to sell all current listings at the current sales pace if no new listings became… Continue Reading
