The single-family housing market is made up of new construction homes and existing homes.
Most people interact with the existing market because it is much larger and because not all regions of the country have a lot of construction.
2/11
— Eric Basmajian (@EPBResearch) December 16, 2024
If we look at all available for sale single-family homes, both new and existing, inventory is about the same as 2018 and 2019.
4/11 pic.twitter.com/GFMZTEJh8S
— Eric Basmajian (@EPBResearch) December 16, 2024
The months supply of new homes is 9.5 (very high).
The months supply of existing homes is 4.2 (slightly less than normal).
6/11 pic.twitter.com/6jrRyxWaKM
— Eric Basmajian (@EPBResearch) December 16, 2024
Months supply is a great metric and many people use 5.0 to 6.0 as the benchmark for a "balanced" market because there's a relationship between months supply and home price growth.
So, today's level of 5.0 is roughly balanced.
7/11 pic.twitter.com/8nzS1jipjQ
— Eric Basmajian (@EPBResearch) December 16, 2024
But remember, the new construction market is way different from the existing market.
Most people interact with the existing market because it is bigger and not all areas have new construction.
This leads to regional disparities.
8/11
— Eric Basmajian (@EPBResearch) December 16, 2024
So overall, the single-family housing market is roughly balanced.
But this is made up of a very tight market in some areas with low new construction and very loose markets in areas with high new construction.
We're not at 2008 levels but we're no longer in the housing market of…
— Eric Basmajian (@EPBResearch) December 16, 2024
There’s plenty of demand to buy.
It’s just no one has any money to qualify to borrow. https://t.co/U2pFoSu9x6
— QE Infinity (@StealthQE4) December 16, 2024
If you drive around the boonies of Dallas metro, you will find thousands of unsold new homes pic.twitter.com/Ll5V3uKlZz
— Don Johnson (@DonMiami3) December 16, 2024
The cost of keeping a roof over their heads is forcing many Americans to make unimaginable sacrifices. A recent survey by Redfin reveals that 24% of homeowners earning under $50,000 annually have skipped meals to meet their monthly housing expenses. For many, the choice between eating and paying the mortgage has become an unbearable reality.
The financial strain extends far beyond skipped meals. Nearly 74% of low-income Americans struggle to make rent or mortgage payments. Across all income levels, 39% of Americans report skipping meals just to afford housing. Others are cutting back on essentials: 43% have stopped dining out, 36% have slashed vacations, and 21% are delaying or avoiding medical treatments. The desperate measures don’t stop there—23% have resorted to selling personal belongings to stay afloat.
Rising mortgage rates and inflation have amplified the crisis. Higher borrowing costs have made mortgages unaffordable for many, while inflation continues to erode purchasing power. At the same time, the stock of affordable housing has dwindled, with fewer apartments available for less than $1,000 a month. The result is a housing market that punishes the most vulnerable while squeezing the middle class.
https://finance.yahoo.com/news/alarming-39-americans-skipped-meals-120000123.html