CNBC is reporting that “Inventory is increasing and building”. Diana Olick, citing new data from Realtor.com, mentioned that the supply of homes for sale (housing inventory) is building and that the market is turning due to affordability and high interest rates. There was mention that housing inventory in April is down 12% year over year, and that it’s the smallest decrease we’ve had since 2019. There was a clear attempt to show the housing market is weakening. This was a large decrease in inventory and if the decrease was mitigated, it was because housing inventory usually increases this time of year every year.

It appears as though the media is trying to strike fear into future homebuyers and investors. Here are some hard facts that prove that the housing market is still quite strong. Remember, low inventory numbers are supportive of home pricing. Inventories are now at 950,000 homes available for sale according to the existing home sales report. New home listings are down 67% from last year and the average time homes are listed on the market dropped from 19 days to 18 days in the last existing home sales report as well.

On the other side, demand is at a record high. There are 12 million more household formations than there were in 2007. We have seen offers on homes that won bidding wars with over 70 offers in this current higher priced and higher interest rate market.

Again, the way we see it, the housing market is still strong and will continue to be strong. The current dynamic of the housing market is very supportive of home pricing, so please don’t be misguided by the media.

Source: https://cnb.cx/39iRUQc

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