A recent Mortgage Bankers Association “Chart of the Week” illustrated how low inventories of homes for sale are putting upward pressure on home prices. Last week’s chart emphasizes that if the March pace of sales persists and inventory is not replenished, current inventory will run out in about 4 months. Recently, home sales have been rising as inventory is declining.
“Prior to January of 2017, months supply has not been this low since January of 2005 just prior to the peak of existing home sales, when the nature of demand and credit conditions were quite different. The average months supply over the history of the data has been about 6 months.”