If you compare the Market Index numbers from April/May 2022 (shown above) to the numbers below from September 2021, at first glance, it may be hard to distinguish a difference. But the subtleties provide hints of the continuous shift to come.
All things being equal happens when each index reaches 100.
Let's Take a Look at Supply:
Housing inventory between now and then has grown even tighter. Although there are more homes on the market in the most recent months, we remain with slightly less available homes for sale than September 2021 (see below); the supply index changing by only 5 points.
Buyers Are Beginning to Say "Enough is Enough":
Demand is chillin' out, as buyers are sitting on the sidelines waiting for an opportunity. What does THAT mean? It could be any number of hopefuls. When interest rates fall. When foreclosures come. When values drop. But if demand is where it needs to be (see above indicator) is the supply shortfall really the key setback?
Yes. And no.
