Housing Supply Plummets to an 18-year Low
Housing supply has been an enormous hurdle to cross over the past couple of years and now it looks like inventory has hit a new 18-year low, according to a recent report.
"This inventory shortage comes at a time otherwise positive for the housing market, as demographic and economic factors, such as millennials moving into the market and household income increasing, continue progressing," according to National Mortgage News.
According to a CoreLogic infographic, entry-level housing inventory was quite scarce with just a 2-month supply as of March 2018. Miami is one of the largest metropolitan areas with nine months inventory. However, the report states that most of the inventory is comprised of condominiums.
"For cities seeing strong job growth, like Denver, Seattle and San Francisco, there was only about two months' worth of housing inventory, making these markets ideal for home sellers," according to NMN.
Unfortunately, new home construction cannot keep up with the demand in popular metropolitan areas. It has been an ongoing struggle for some states, though, others have had some success in maintaining a healthy supply.
For more information on the 18-year low for housing supply, click on the image above.
