Jason HartmanCEO of Empowered Investor and Real Estate Tools

The Shocking State Of Housing Inventory!

Name: The Shocking State Of Housing Inventory!
Uploaded: 2024-06-20T21:34:12+00:00
Duration: 58 s
Channel: Jason Hartman
Description: In this video, speaker Jason Hartman explains that U.S. housing inventory remains historically low—about half of the level considered normal in…

20 Jun 2024 · 1 min

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In this video, speaker Jason Hartman explains that U.S. housing inventory remains historically low—about half of the level considered normal in 2015—despite population growth that would normally raise the “new‑normal” inventory level. He notes that while the current inventory is more than double the pandemic low point, it is still insufficient, creating a “stuck” resale market. Homeowners are reluctant to sell because they locked in exceptionally low mortgage payments during the COVID era, payments that are cheaper than what could be obtained a decade earlier even though home prices have nearly doubled. This dynamic suppresses turnover and keeps inventory constrained.

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One of the things I have been talking about here, which I think is very important for all of you listening and watching, and that is the uptick in housing inventory. Well, it's still historically low, about half of what it should be to be what was considered normal back in 2015. And of course, the population has gone up since then. So the new normal is a higher number than it was back then. But let's just go with that for simplicity's sake. We are at about half of normal numbers in terms of the housing market, although that is more than double. The lowest point during the COVID era means that we are still in a stuck resale market with a lock, in effect, where people just don't want to give up their incredible deals on their incredible mortgages. They basically went back in time by a decade and got mortgage payments in the COVID era that were literally cheaper than the mortgages you could get 10 years earlier. Not the mortgages. I mean that mortgage payment on the house, even though the house price had almost doubled during that time.