Falling Mortgage Rates Are Depleting Housing Inventory
October 16, 2019
The housing inventory continues to struggle with availability issues. Inventories of available homes for sale hit a record low a few years back. Following that, lulls in sales allowed the inventory to build back up. Unfortunately, falling interest rates have led to a surge of demand over the summer, meaning that inventories are falling again.
The national inventory of available homes fell by 2.5 percent annually in Septmeber, an accelerated decline after August’s 1.8 percent decline. Buyers at the lower end of the market are seeing the most scarcity, with the supply of houses under $200,000 down 10 percent from the same period last year. The supply of homes priced between $200,000 and $750,000, which account for more than two-thirds of the market, steadily increased for the last 18 months, before flatlining in September.