Is The Housing Market Really Stabilizing?

Is The Housing Market Really Stabilizing?

One of the ways to measure the balance between supply and demand in real estate is to use the ‘Months Inventory of Homes for Sale’ metric. It represents the number of months it would take to sell all the homes currently on the market if no new homes were listed.

National View: Inventory is starting to grow, a sign that the market could be starting to balance out. Month’s supply was at 4.0 for July. According to Lawrence Yun, the Chief Economist at the National Association of REALTORS, said this week, “Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis.”

Local View: Since 2020, Westchester has seen a steady decline in the number of homes for sale, with inventory dropping and staying below 5 months. This is what we would define as a “seller's market”. Last month, the supply decreased to just 2.5 months, an indication that buyers still face increased competition, often resulting in higher prices and bidding wars.

Ralph’s Take

Keeping an eye on months' inventory is essential for understanding the balance between supply and demand in the market. While the national market shows signs of stabilizing, Westchester County still favors sellers. It's important to note that trends vary by property type and location. If you would like specific data on your current area or a place you're considering moving to, please contact me.