Source: Housing Wire —
My biggest concern for housing in the years 2020-2024 was that if the demographic push in demand picks up and total home sales get over 6.2 million, we could be at risk of housing inventory falling to such low levels that I would have to categorize this housing market as unhealthy. 2020 and 2021 easily each have over6.2 million new and existing home sales combined.
This type of sales growth — which couldn’t happen from 2008-2019, as I have often stated — is coming with a hefty price tag. We can see that inventory falling to such low levels has created unhealthy home-price growth in both 2020 and 2021. While the rate of growth of home prices is cooling off (the S&P CoreLogic Case-Shiller Home Price Index typically lags), it’s still at a very unhealthy level for me. This is all about housing inventory collapsing to all-time lows in 2020-2021.