Tag

housing supply

“Sort-of-Shadow” Inventory & The 2018 Housing Market

A decade ago, housing experts warned — incorrectly, it turns out — of a Tsunami of “shadow” inventory waiting to flood the then-moribund housing market, and drag prices still lower.  See, “Barry Ritholtz Issues Mea Culpa on Housing.” The source of all those homes? Banks sitting on millions of foreclosures nationally. Fortunately, it never happened: banks bundled...
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Housing Inventory, Grocery Checkout Lines, and Absorption Rates

Question:  How Fast (or Slow) is the Housing Market? “Absorption rate”:  the rate at which available homes are sold in a specific real estate market during a given time period. It is calculated by dividing the average number of sales per month by the total number of available homes. –Investopedia.com Assuming the standard definition of...
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Hey! What Happened to All the Inventory?!?

Lack of Supply = Higher Prices? Fellow Edina Realty agent (and blogger) Aaron Dickinson has a nice post shining a spotlight on a lightly heralded, not-so-overnight housing market development:  the lack of Twin Cities homes for sale. In fact, as Aaron notes, the number of homes on the market locally in October — just over 21,000...
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Shrinking Supply

Market Tightens While No One’s Looking Quick quiz: When was the last time that Twin Cities housing inventory was as low as it is now? A. June, 2008B. January, 2003C. August, 2001D. March, 2006 Correct answer: D. What’s so significant about that? Tight supply — along with easy money — was the kindling that lit...
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