For those in search of a new home, the current market offers limited options.
In recent years, the housing market has been recovering from a period of scarcity. While the inventory of new and existing homes is increasing, there is a peculiar trend emerging: an apparent oversupply of newly constructed homes.
This anomaly can be attributed to the unique dynamics of today’s housing market, which can be traced back to the subprime mortgage boom of the early 2000s.
Despite the traditional belief that high supply leads to lower prices, home prices continue to climb.
Understanding the supply situation
According to the National Association of Home Builders (NAHB), there is currently a 4.4-month supply of new and existing homes on the market. This metric, known as months’ supply, indicates how long it would take to sell all available homes at the current sales rate. Typically, a six-month supply is considered…
2024-07-09 16:11:32
Source from www.cnbc.com