Inventory is down year over year, but months of supply says the market is functioning

The latest numbers show that inventory is down slightly from last year, but what's interesting is that the market seems to be functioning normally, with 4.6 months of supply. This balance between supply and demand is likely what's keeping price growth in check, at 2.0%. For context, a balanced market typically has around 4-6 months of supply, so 4.6 months suggests that buyers and sellers are in a stable position.

This news is relevant to our local audience because it suggests that the market isn't experiencing the kind of extreme fluctuations that we've seen in the past. With inventory down year over year, some might expect prices to skyrocket, but the fact that months of supply is holding steady indicates that the market is self-correcting. This is good news for buyers, who might be worried about being priced out of the market, and for sellers, who want to get a fair price for their properties.

Looking ahead, what's worth watching is how long this balance between supply and demand holds. If inventory continues to decline, will months of supply also decrease, leading to faster price growth? Or will we see an increase in new listings, which would help to stabilize the market? Local real estate agents and industry experts will be keeping a close eye on these numbers, as will potential buyers and sellers, who will want to make informed decisions about when to enter the market.

Originally reported by housingwire.com. LodgeNews adds analysis for real estate & property readers.