22 Apr Inventory Hits Record Low
Good morning everyone!
Some headlines are claiming that the housing market is cooling off because existing home sales for the month of March came in at a 3.7% decline from February. Even though March shows a year over year increase of 12%, at face value, the insanely hot housing market could look to be showing. However, at the same time, inventory hit an all time low. We have talked extensively about the inventory crisis and some of the legislation that will further exacerbate the crisis. But this month, a record low of 1.07M homes are on the market and current inventory is flying off the shelfs with a average 18 days on market. This is 28% lower than this time last year. This has lead to a median sales price of homes across the country to grow to $329k. This is a frustrating market for buyers to be in because of the reasons we talked about yesterday – record # of cash offers, record # of offers over asking price, record low average number of days on the market and record low inventory.
The mortgage market continues to climb this morning, up another 5 bps. We have a Fibonacci ceiling right above us which could cause us to bounce lower. However, If we are able to break above it, we have a lot of room to climb before our 100 DMA. We are carefully floating but will lock if we see any downward movement after touching our current ceiling.
Have an awesome day!