Inventories of homes for sale fell to a record low in early 2021, declining to a supply of 1.9 months, according to the Harvard Joint Center for Housing Studies’ State of the Nation’s Housing report.
It was the first time housing supply fell below 2.0 months since recordkeeping began in the 1980s.
“Historically, a balanced market has been defined as 6.0 months of available inventory, which has not occurred in the U.S. since 2011,” the report stated. As of April 2021, inventory climbed to 2.4 months of supply.
As inventory sank, home prices accelerated. In June 2020, home prices were rising at an annual rate of 4%; by March 2021, prices were more than 13% higher year-over-year.
The full JCHS report can be found here.
Read Next
