CNBC‘s Diana Olick reports on the return of inventory shortgages in the housing market.
At the end of October, inventory nationwide fell to a 3.9-month supply, according to the National Association of Realtors. The means that at the current sales pace it would take that long to sell all of the 1.77 million homes available for sale.
A 6-month supply is generally the sign of healthy market, balanced between buyers and sellers.
Inventory has been falling annually for five straight months, after it recovered slightly toward the end of last year, due to a spike in mortgage rates. Rates began falling again by spring of this year. Home builders have been increasing production slowly, but it’s not enough to meet the increasingly strong demand.
