Austin KlarVanguard Properties · Lawyer Turned Real Estate Agent

Housing Inventory Remains Low -- Don't be Fooled by Headlines

Name: Housing Inventory Remains Low -- Don't be Fooled by Headlines
Uploaded: 2023-09-10T01:00:05+00:00
Duration: 35 s
Channel: Austin Klar
Description: In this brief commentary, Austin Klar argues that the current level of active housing inventory in the United States is lower than it was at the same…

10 Sept 2023 · 1 min

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In this brief commentary, Austin Klar argues that the current level of active housing inventory in the United States is lower than it was at the same point in most recent years (2017‑2022), with only 2021 having fewer listings. He emphasizes that home prices are driven by the fundamental law of supply and demand, and asserts that demand continues to outpace the limited existing‑home supply even with today’s higher interest rates. Consequently, Klar warns viewers not to expect a price crash simply because of a perceived increase in inventory, labeling such expectations as misguided.

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If you think rising inventory is going to cause a home price crash, think again. Active inventory we have on the market right now is less than what we had at the same time in 2022, 2020, 2019, 2018, and 2017. The only year with fewer homes on the market at this time was 2021, which we all know was a crazy year for real estate, not normal at all. At the end of the day, home prices are governed by supply and demand like prices of any good or service in this economy. And the reality is we have so much more demand than existing supply even at today's interest rates. So do not bank on a market crash because of a big wave of inventory or surging inventory. That's not what's happening.