By: Jeff Bernard
Housing prices continue to rise; however, the construction of new homes is also on the rise. The market is beginning to change, which will result in a more balanced housing marketplace for both buyers and sellers. But this process will take time.
Looking back to February 2021, year-over-year inventory was down 30% from February 2020. And the supply of REALTORS®️ surpassed the supply of homes for sale in the US. Economists Sabrina Speianu and Danielle Hale reported in an article published at Realtor.com wrote:
“Nationally, the inventory of homes actively for sale in June decreased by 43.1% over the past year, a lower rate of decline compared to the 50.9% drop in May.“
Housing inventories began to fall after the housing market collapse in 2008 and hit an all-time low in ~May 2011. Nevertheless, there is hope on the horizon for home buyers as the inventory of new homes has increased in June 2021. The interruption of the supply chain will continue to cause delays for builders in the coming months, but the trend of home permits and construction is finally increasing. However, it will take several years for the housing market to reach market equilibrium.