A breakdown of October 2023 housing data showing home sales down 13.8% but inventory down 15%, suggesting the market is more resilient than media headlines claim. The speaker clarifies what these numbers actually mean.
We recently spoke about the strength of the recent home values reports, but some in the media kind of took this and spun it into a different direction. So they're saying that home sales are down 13.8% compared to the same time last year. And while that is true, what they're failing to mention is inventory of homes is also down 15% compared to this time last year. So with 15% less houses to sell, 13.8% less houses have been sold. That actually makes perfect sense. And really when you dive into it, that kind of shows resilience for the housing market. Rates have been stubbornly high well into this episode. Percent for many lenders and buyers haven't slowed down. Buyers are still showing up buying houses even through a high rate environment. What's going to happen when rates drop? We all know the answer to that. So home sales are down only because inventory is down. Buyer demand is still at all time highs.
