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Housing Market: The Real Reason Why Inventory is So Low

Real Estate

The US housing market has been experiencing inventory constraints as the number of homes for sale continues to fall, resulting in a limited supply and stubbornly high prices in many areas throughout the country. Real estate experts have been closely monitoring the market to gauge potential shifts or developments.

Real Estate expert Jason Hartman recently shared fresh data on the US housing market in a video for the Rebel Capitalist Pro community.

Hartman presented a chart that showcased the current state of inventory and sales for homes in the US.

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He explained that although sales have slightly ticked up, inventory has also increased slightly, which still leaves sales constrained by the limited inventory.

Hartman further revealed that there are currently 422,000 homes for sale in the US, which is significantly lower compared to the pre-pandemic period, when double the amount of inventory was available.

In addition, the normal inventory supply in the US housing market is about six months, which has not been seen for several years.

To reach that level, inventory would need to triple, which is a remarkable observation for those in the real estate industry.

Moreover, Hartman noted that the number of new listings coming on the market has been significantly low, making the housing market's current state barren.

While it is not the slowest it has ever been, the market has been sluggish.

Housing Market's Inventory Issue Is Due To Several Factors

Experts suggest that the housing market's inventory issue is due to several factors, including the number of historically low rates, 30-year fixed-rate mortgages on the books,  rising material costs, a shortage of skilled labor, and increasing demand from people seeking more space from blue states and cities during the pandemic.

These factors have contributed to a rise in home prices in linear markets, making homeownership unaffordable for many Americans.

In conclusion, the US housing market's inventory shortage continues to be a significant concern for the industry, with limited inventory driving up prices and making homeownership unaffordable for many.

It remains to be seen whether inventory levels will improve in the coming months and how this will affect the housing market as a whole.