MONTHLY MATTER
07/16/2024 |
Traditionally, house prices have declined when months-of-inventory exceeds six months. However, in 2022 we saw prices fall for seven months despite months-of-inventory in the 3s! That was probably a knee-jerk reaction to rapidly rising rates and memories of 2008/09. Months-of-supply is now 3.7 months, up from 2.6 in spring 2023. I suspect national prices start declining if months-of-inventory exceeds 5.0 months as so many homeowners have so much equity.