by Calculated Risk on 8/08/2022 12:34:00 PM
Today, in the Calculated Risk Real Estate Newsletter: Housing Inventory Growth Has Slowed in Recent Weeks
A brief excerpt:
…The current situation is very different from the post-bubble period. Following the housing bubble, many homeowners were forced to sell because they had little or no equity in their homes, and loans that they could no longer afford when teaser rates expired. This led to a huge surge in inventory starting in late 2005.
Now most homeowners have substantial equity, and fixed rate loans with low interest rates. This suggests there will be little forced selling, even if prices decline in some areas.
Some people will always need to sell due to death, divorce, moving for work, etc., and some speculators might be forced to sell, but it is unlikely we will see a huge surge in inventory like in late-2005.
I’ve been expecting inventory to return to 2019 levels in early 2023 with low demand and some normal levels of new listings. However, it is possible that it might take much longer to return to more normal inventory levels – inventory will tell the tale!
There is much more in the article. You can subscribe at https://calculatedrisk.substack.com/