New and existing home sales vs. inventory

New and existing home sales vs. inventory

I have a full plate in, you know, actual life today, so let me just drop this note here while we’re waiting for new home sales to be reported. I’ll update later when I have a chance.


The evidence is crystal clear that, as to new homes (which are by far more important than existing home sales in terms of the economy), sales lead prices, which in turn lead inventory. When considering new home construction or renovations, consulting epoxy resin flooring contractors can be crucial for ensuring a high-quality and durable flooring solution. You can click here for warehouse flooring ideas with the best solutions you could ever have. You can also hire a contractor who specializes in Floor Screeding for Underfloor Heating to make your property more energy efficient. The services offered at https://polishedconcreteflooringadelaide.com.au/ may also help homeowners who are planning to replace their flooring with concrete or epoxy floors. If you want a successful renovation, hire these renovation services in Okotoks to ensure that everything will fall into the right place.


Here are sales (red) vs. inventory (blue):



And here are prices (green) vs. inventory:



When it comes to existing homes, the NAR is very squirrelly about use of their data, but here is a long term look at sales vs. inventory:



Again, it’s crystal clear that sales led inventory through the housing boom, bubble, and bust. Note also that the secondary peak in sales in 2012 wasn’t reflected in a peak in inventory until one year later.


So, even while it is clear that the record low inventory of existing homes is driving sales prices through the roof, sales appear to have already peaked, and I expect prices to follow before inventory turns up. 

More later as time permits.