Inventory declining faster than expected 2023-01-12
Gulf Coast Real Estate Update
January 12th, 2023
A notable drop in inventory
Traditionally, housing inventory falls in the month of December, however, we clearly saw in the second half of 2022 that higher rates created more days on the market and inventory was lingering longer. During the last four weeks and especially this past week, we are seeing inventory decline faster than expected.
As we can see in the chart above, the weekly inventory data is now heading down more noticeably. It will be interesting to see whether this weekly data stops declining before the spring seasonal push in inventory or if we will have a repeat of the second half of 2022, where we saw a lack of new listing growth. That mean homebuyers would have slim pickings again for the spring buying season.
We are on the cusp of breaking under 1 million total active listings, and if this happens in 2023, it will be only the second time in recent history this has occurred. Per the last existing home sales report, we have 1.14 million homes for sale. Historically, the U.S. has between 2 million and 2.5 million. During the height of the housing bubble years, we had 4 million.
Source: Altos Data, NAR
Coming Soon
Gulf Front Condo
Madeira Beach
One Bedroom Unit Direct Gulf Front Turnkey Oportunity
Strong Rental History
$825,000 Madeira Beach
Mortgage Rates Decline
While mortgage rates have resumed their decline, the market remains hypersensitive to rate movements, with purchase demand experiencing large swings relative to small changes in rates. Over the last few weeks latent demand has been on display with buyers jumping in and out of the market as rates move.
