Today, in the Calculated Risk Real Estate Newsletter: Watch Months-of-Supply!
A brief excerpt:
Although inventory is well below normal levels, so are sales. I think we need to keep an eye on months-of-supply. Historically nominal prices declined when months-of-supply approached 6 months – and that is unlikely this year – but we could see months-of-supply back to 2019 levels later this year.
What would it take to get months-of-supply back to 2019 levels by mid-year? The following table is a simple exercise. If sales stay depressed at 2023 levels, how much would inventory have to increase to put months-of-supply at 2019 levels?
There is much more in the article.