Supply in the US housing market is so bizarre right now.
New construction has a months supply of 9.1 while existing homes have a months supply less than 4.0.
Existing homes make up 85% of transactions so the total market has a months supply of 4.3. pic.twitter.com/vc1jEJxYkb
— Eric Basmajian (@EPBResearch) May 26, 2024
Supply in the US housing market is in a state of disarray. New construction faces a daunting 9.1 months’ supply, while existing homes hover just under 4.0 months. With existing homes dominating 85% of transactions, the overall market is left with a fragile 4.3 months’ supply. This imbalance isn’t isolated to the US alone—across the Atlantic, in Germany and France, real estate markets have ground to a halt.
In the past five years, even the wealthy are feeling the pinch. Many who invested in properties are now finding them unaffordable. This dire situation has forced more people to consider renting instead of owning. Looking forward, there’s a looming sense that housing inventories will surge dramatically over the next year, potentially reshaping the American housing landscape.
This signifies a critical juncture where the dream of homeownership is slipping out of reach for many. The impacts are widespread, affecting everyone from first-time buyers to seasoned investors. Challenges abound, from affordability crises to the broader economic implications of a volatile housing market.
No wonder more people need to rent instead of buying property, btw not only in the US. Real estate market in Germany and France is basically frozen. pic.twitter.com/wbRA6WrVc5
— Michael A. Arouet (@MichaelAArouet) May 27, 2024
👀 👀
Most people that bought in the past 5 years can’t afford them.
That includes the rich. I have a feeling inventories will be increasing significantly over the next year
Stay tuned pic.twitter.com/uBggRPb0yu
— QE Infinity (@StealthQE4) May 27, 2024
Not a rosy picture painted by economic surprises
Chart @FrancoisTrahan pic.twitter.com/HdgdSZt9wI
— Michael A. Arouet (@MichaelAArouet) May 27, 2024