US 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 fourth straight month in October as the already severe housing shortage persists.
A new report from Realtor.com released Thursday morning shows that the total number of homes for sale, including homes that were under contract but not yet sold, fell by 4% in October compared with the same time a year ago.
On top of that, available home supply remains down a stunning 41.8% from the typical amount before the COVID-19 pandemic began in early 2020, according to the report.
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Homes in Hercules, California, on Wednesday, Aug. 16, 2023. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)
«The current housing market continues to challenge homebuyers and sellers alike, but we do see signs of adjustment,» said Danielle Hale, chief economist at Realtor.com. «While record-high mortgage rates are putting off many would-be buyers, decreases in both inventory and time homes spend on the market shows that some buyers are moving quickly to lock in rates before they can go any higher.»
Still, there are some signs of improvement on the inventory front. The report indicated that total inventory rose 5.1% in October from the previous month, even though typically the number of homes for sale declines in the fall.
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The lack of available homes for sale is keeping prices uncomfortably high, even though mortgage rates are hovering near the highest level in two
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