![]() They can expect to get higher prices for their homes if they’re ready to sell.Ī small inventory and a rise in home sales presents potential market opportunities for homebuilders such as Pulte Group (PHM), KB Homes (KBH), and Standard Pacific (SPF) that are looking to ramp up their supply of homes in anticipation of higher sales. On the other hand, a small housing inventory is actually good for homeowners. Rising prices can discourage prospective buyers who may delay their decision to buy until it’s more affordable for them. Rising demand along with lower supply can push up home prices. The rise in existing-home sales, along with a drop in inventory, has created a shortage of homes on the market. A six-month supply is normally considered a healthy balance between supply and demand. ![]() The month’s supply of home inventory inversely correlates with pricing changes. February’s levels are the lowest they’ve been for the past nineteen months. Since then, inventory has been in decline. The NAR reports: Existing-Home Sales Decline in March but Inventory Down, Prices Stabilizing Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, declined 2.6 percent to a seasonally adjusted annual rate of 4.48 million in March from an upwardly revised 4. There was supply for 11.2 months in 2008 and for seven months in 2010. The current home inventory is almost at par with pre-recession levels.įebruary inventory equaled 4.7 months of supply, a decline of 7.8% over January. In February, existing home inventory reach 1.89 million, up a marginal 1.6% over January, but also down 0.53% over the same period a year ago. ![]() Total housing inventory, which peaked just over 4 million during the heyday of the economic boom, has declined steadily since then.
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