According to Keeping Current Matters, many headlines claim that new home inventory is at its highest level since the 2008 housing crash. For anyone who remembers that market shift, seeing new construction rise again may feel unsettling. However, the data tells a very different story.
While it’s true that the number of new homes on the market has reached its highest point since the crash, that doesn’t mean the housing market is in trouble. New builds represent only one part of the overall real estate market. To truly understand inventory levels, you must consider both new construction homes and existing homes.
After the 2008 housing crisis, builders significantly slowed production. For nearly 15 years, new home construction did not keep pace with demand, creating a major housing shortage across the country. Even with the recent increase in new builds, there is still a substantial gap. Experts estimate it would take about 7.5 years of building at today’s pace to close the supply-demand imbalance.
Nationally, this is not a repeat of 2008. While more new homes are available today, overall housing inventory remains constrained, and demand continues to outpace supply in many markets.
If you’re wondering how this impacts buying or selling in your local area, contact Indigo Skye Group today for expert real estate guidance and personalized market insights.
source: www.keepingcurrentmatters.com
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