One way to measure housing market health is to look at months of supply. Months of supply refers to how long it would take to sell all the homes available for sale at the current sales pace. When months of supply is low, it benefits sellers. When it’s high, buyers are in control. A six-month supply is considered a balanced housing market and, according to one new analysis, we’re getting close. The National Association of Realtors’ consumer website’s August housing report found there’s currently a five-month supply of homes available for sale. That’s pretty close to balanced and a level not seen during summer since the website began tracking the metric in 2016. Danielle Hale, the website’s chief economist, says buyers still need to watch their local market. “The national housing market is now more balanced between home buyers and sellers at five months of supply, but that balance conceals a wide range of local realities,’ Hale said. “In Miami, Austin, and Orlando, buyers are clearly in control, while in metros like Milwaukee and Boston, sellers remain firmly in the driver’s seat.” (source)
