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Housing inventory falls under 1M again as sales collapse

Housing Wire

On Friday NAR reported that total housing inventory levels broke under 1 million in December, dropping to 970,00 units for a population of 330 million people. million in January down to about 4 million in December, We now have total inventory levels near all-time lows again. The days on market were too low.

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Will we start 2022 with all-time lows in housing inventory?

Housing Wire

2 million , we could be at risk of housing inventory falling to such low levels that I would have to categorize this housing market as unhealthy. We can see that inventory falling to such low levels has created unhealthy home-price growth in both 2020 and 2021. 2020 and 2021 easily each have over 6.2

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Logan Mohtashami unpacks the slow train wreck that’s been happening in housing inventory

Housing Wire

One top question he addresses is how the industry is reacting to this savagely unhealthy housing market. HW+ Member: What’s the number one question you are getting from the real estate agent community on the economy and housing market? As we can see, it’s been a struggle to get inventory back into this range post-2020.

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Is the savagely unhealthy housing market back?

Housing Wire

Just when I thought days on market were returning to normal, that number for existing homes fell back down to 22 days. If the days on the market are at a teenager level or even lower, it’s never a good sign for the housing market. If we had a massive credit boom-to-bust, inventory would have skyrocketed in 2022.

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The housing market is now savagely unhealthy

Housing Wire

Inventory has broken to all-time lows, but it doesn’t look like the year-over-year data will be positive at all this year unless demand softens up. NAR Research : Unsold inventory sits at a 1.7-month NAR Research : Unsold inventory sits at a 1.7-month However, negative year-over-year inventory is not what we want to see.

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How home-price growth has damaged the housing market

Housing Wire

This data line lags the current housing market as it’s a few months old. Since 2014, we’ve not seen the credit housing boom that we saw from 2002-2005. The housing market can’t replicate the type of massive credit expansion we saw from 2002-2005, so the price-growth story has more to do with inventory collapsing to all-time lows.

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Lower mortgage rates are stabilizing the housing market

Housing Wire

Now, with five weeks of data in front of us, we can say they have stabilized the market. As you can see from the chart above, the last several years have not had the FOMO (fear of missing out) housing credit boom we saw from 2002-2005. Total inventory levels. NAR: Total Inventory levels 1.22