Home Inventory Measure Falls to April 2007 Levels

The best news in yesterday's housing report from the National Association of Realtors on existing-home sales (data here) was that at the current sales rate (425,000 homes sold in August), it would take 8.5 months to sell off the current inventory of 3,622,000 homes, and this inventory measure is at the lowest level since April of 2007 (see chart above). A year ago August, the months supply of homes was 10.6, and had averaged more than 11 months in the four previous months, so there has been a significant improvement over the last year in the balance of homes available for sale relative to the demand.

Comments

[jeandit75:]

"The best news in yesterday's housing report..."

Here is a great example how "kool-aid" drinkers like to cherry pick on what ever data that would enable them to talk their book and shout that "things are improving!!!".

Thanks one again for a well-thought article Dr. Perry

Sep 25 07:10 AM

[CautiousInv...:]

While yesterday's inventory report is good news, it was accompanied by other reports suggesting we need to get down to around six months of supply to realize stabilization in prices. But with 7 million foreclosures looming, this may be nothing more than idle discussion before being buried beneath an avalanche of used homes.

Sep 25 08:29 AM

[aardvark:]

"there has been a significant improvement over the last year in the balance of homes available for sale relative to the demand. "

Improvement except for one thing, rising foreclosure rates and zombie homes kept alive by banks so they don't have to do the FEARED MARK TO MARKET.

Sep 25 12:32 PM

[enigmaman:]

That would be great news if this was 2007, but its not, its 2009 and the new normal is the destruction of jobs, falling individual credit scores, lose of savings, tighter underwriting mortgage and appraisal guidelines, massive reduction in mortgage loan product types, rising rate environment and worst of all the loss of trust in the future. But dont let these facts get in the way of a great headline, we all need some good news even if its from a few years ago, memories are priceless

Sep 25 01:44 PM