Housing inventory remains painfully low as shortage persists
GuideStone Capital Management President and CIO David Spika discusses the markets, inflation, and how the latest jobs report reflects the current state of the economy.
The number of homes for sale on the market fell for the fifth straight month in September amid the already severe housing shortage.
A new report from Realtor.com shows that the total number of homes for sale, including homes that were under contract but not yet sold, fell by 4% in September compared with the same time a year ago.
On top of that, available home supply remains down a stunning 45.1% from the typical amount before the COVID-19 pandemic began in early 2020, according to the report.
MORTGAGE CALCULATOR: SEE HOW MUCH HIGHER RATES COULD COST YOU
Homes in Hercules, California, on Wednesday, Aug. 16, 2023. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)
«Inventory remains constrained as homes sell at a fairly quick pace,» the report said. «Buyers continue to contend with high listing prices, mortgage rates, and lower inventory than last year.»
Still, there are some signs of improvement on the inventory front. The report indicated that total inventory rose in September from the previous month «more than can be expected for this time of year.»
HOME PRICES COULD SURGE OVER THE NEXT YEAR AS AFFORDABILITY CRISIS WORSENS
The lack of available homes for sale is driving home prices higher, even though mortgage rates are hovering near the highest level in two decades. Sellers who locked in a low mortgage rate before the pandemic began have been reluctant to sell, leaving few options for eager would-be buyers.
Homes in Rocklin, California, on Dec. 6, 2022. ( Photographer: David Paul Morris/Bloomberg via Getty Images / Getty
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