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Where Inventory Shortages Are Hitting Housing Hardest

Resale inventory has hit its lowest level in more than 18 years and continues to decrease as new home construction lags rising demand for housing according to CoreLogic. In this video, Molly Boesel, Principal Economist at CoreLogic explains the ongoing inventory crisis and how it is impacting the entry-level housing market in particular.

“One way to measure for-sale housing inventory is with “months’ supply,” which shows how many months it would take to sell available inventory at the current sales pace, as if no other homes came on the market, which is unlikely but it is a good snapshot to measure health,” Boesel said.

According to Boesel, the months’ housing supply in March 2018 was approximately 3.8 months measured across the country, which means “it would take only 3.8 months to sell all the existing houses listed for sale at the March 2018 sales prices.”

When looked at in terms of different price levels, inventory shortage is even tighter for entry-level homes according to CoreLogic, along with areas of the country with strong job growth such as Denver, Seattle, and San Francisco, all of which have “about two months of supply, making each of those cities a sellers’ market.”

About Author: Radhika Ojha

Radhika Ojha is an independent writer and editor. A former Online Editor and currently a reporter for MReport, she is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her master’s degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas.

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