The housing market is out of balance. Months of supply and inventory levels show whether buyers or sellers have the advantage right now, and recent trends reveal which way the market is shifting.
What's going on with housing supply. So one key indicator to tell if it's a balanced housing market between buyers and sellers is number of months of homes available for sale. What this means is if no new homes hit the market and we just have today's current listed inventory, how many months would it take for today's buyers to buy up all that inventory? A balanced housing market is six months supply. Also keep in mind, for the first time Since February of 2020, we now have peaked at above 1 million homes listed for sale, which should be great news at balancing out the housing market. That's more inventory hitting the market. However, buyers have outpace that demand has outpaced supply and we're still only at 2.9 months supply available. We only have half the amount of homes that we need and we have a million homes. We need 2 million homes. The longer that you're waiting. Yes, more supply might be hitting the market, but more buyers are funneling back into the market and competition is picking up.
