The number of homes for sale to reach pending status last week was 166. Of those, 43 were new construction and 123 resale homes. This is similar demand as the same time last year.
While demand is similar to last year, inventory is down about 50%. There was 1181 homes for sale last week, 192 of which were new construction (down from 200), 223 under construction (up from 215) and 766 resales (up from 743).
Inventory Rate (Demand/Supply Ratio):
The inventory rate is a crucial indicator in the real estate market that measures the supply of homes available for sale relative to the current demand from buyers. It is expressed in terms of months of supply.
The inventory rate has increased slightly over the last several weeks, due to the higher interest rates, but still very low. Last week, the overall inventory rate was 1.7 months, about a 40% improvement over this time last year. For new construction, the inventory rate was 2.2 months and 1.4 months for resale.
Following a marginal decline the previous week, mortgage rates experienced a slight increase. The upward trend in interest rates is affecting interest rate-sensitive sectors like the housing market, leading to a slowdown in activity. Despite this, the overall U.S. consumer confidence has surged to a two-year high according to the Conference Board’s Consumer Confidence Index for July 2023.
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