Part 4/8:
As home sales decline, inventory levels are rising. By the end of April, the housing supply in the U.S. reached 1.45 million units, marking a 9% increase from March and a 20.8% increase from the previous year. This uptick, coupled with stagnant sales, pushes the month supply of inventory to 4.4 months, edging closer to a balanced market – the threshold generally recognized to maintain fairness between buyers and sellers.
This surge in inventory is unlikely to stimulate a resurgence in demand without a corresponding drop in home prices. Even consistent growth in inventory fails to incentivize buyers when changing economic conditions keep prices out of reach.