The Surprising Reason Home Prices Keep Climbing Despite Inventory Rebound

The Surprising Reason Home Prices Keep Climbing Despite Inventory Rebound



Housing ‍prices rise despite more ‌supply: Here's why

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

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