The lack of supply can drive a double-digit price increase in homes
Growth in inventory has been falling in recent months on a year-over-year basis, according to data from the NAR.
Bloomberg’s real estate reporter Johnathan J. Miller says this trend is a reason for concern. “The market might again experience the double-digit price increases of a couple of years ago, when there was a shortage of homes for sale,” he writes.
The decline in inventory suggests other issues in the housing industry, such as access to credit still tight.