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LVrealestateHELP.com
What we are seeing is a combination of increased available housing inventory and a drop off in buyer demand. As these both excelerate there is a compounding effect on the months of inventory statistic since you use the following equation to calculate months of inventory:
Current Supply / Monthly Demand = Months of Inventory Supply (Coming Soon Listings + Active Listings) divided by Demand (Sold Listings in the past 30 days) = Months of Inventory. We need at least one side of this equation to soften its current trend in order for inventory to level off and the market to stabilize. The bad news is the Fed is about to meet in 6 days and likely raise rates again significantly (probably between .75% and 1%). We are also waiting to see what the hedge funds are going to do. Recently they have pulled back on their acquisitions of properties. Hedge funds are a major contributor to the drop in properties going under contract and properties that have recently sold. Several hedge funds have told us that they are waiting to see what happens after the Fed meeting on 7/27/2022. We will have to monitor and see how the bond market and the real estate market react to the upcoming news. For the time being we can analyze the current data and see that the supply and demand trends are only gained momentum. INVENTORY AS OF 7/21 Coming Soon and Active Listings: SFR 6,745 CONDOS 953 TOWNHOMES 599 Multi Family 81 INVENTORY AS OF 7/21 In Escrow Listings SFR 2,123 CONDOS 369 TOWNHOMES 318 Multi Family 51 INVENTORY AS OF 7/21 Sold Listings in Past 30 DAYS SFR 2,167 CONDOS 373 TOWNHOMES 268 Multi Family 30 INVENTORY AS OF 7/21 Months / Days of Inventory based on supply & demand SFR 3.11 mo 94 days CONDOS 2.55 mo 77 days TOWNHOMES 2.24 mo 67 days Multi Family 2.7 mo 81 days 
Best Regards, NV Broker/Salesman at The Adams Team at Rothwell Gornt Companies MA & RI Real Estate Broker at Sankey Real Estate |
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