Housing Inventory Is Extremely Low. Will More Homes Hit in 2022?
Home prices have been sky-high for more than a year now, and the reason behind that boils down to the basics of supply and demand. Any time you have a shortage of a given commodity, its price tends to rise. This applies to everyday purchases like food items and apparel, and it also applies to real estate.
The housing market has been starved for inventory since 2020, when sellers stopped listing their homes as the pandemic raged. But despite a much-improved economy, housing inventory has yet to pick back up.
As of the end of February, the inventory of unsold homes was just 870,000 units on a national level, reports the National Association of Realtors. That's the equivalent of a 1.7-month supply of available homes.
Source Fool.com
