KEY MARKET INDICATORS as of Sept 24, 2019
Inventory and Price in the Housing Market
Inventory and price have a tight relationship in the housing market. Lower inventory generally leads to faster home price growth. One way to see which way housing inventory is moving is by looking at year-over-year changes in the months of supply in the market for existing-homes.
Higher months of supply indicates more inventory in the housing market, whereas lower months of supply indicates less inventory. Months of supply began to increase year-over-year in June last year, and that was followed by a slowdown in home price growth in the second half of the year. As interest rates decreased and affordability improved, the months of supply is beginning to decrease year-over-year. That could mean upside pressure on home price growth.
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Disclaimer: Opinions, estimates and projections in this report constitute the current judgment of the author as of the date of this report. They do not necessarily reflect the opinions of Genworth Mortgage Insurance and are subject to change without notice. Genworth Mortgage Insurance has no obligation to provide revised assessments and assumes no duty to update information in the event of changed circumstances. While we have gathered this information from sources believed to be reliable, Genworth Mortgage Insurance cannot guarantee the accuracy of the information provided. Certain data discussed in this report is publicly available only on a time delayed basis. Genworth Mortgage Insurance strives to analyze data as it becomes available, but makes no representation that all data is reviewed immediately upon release.