Housing Inventory: “Severe, Accelerating, Chronic Shortages in Every Market, in Every Price Range”

Housing Inventory: “Severe, Accelerating, Chronic Shortages in Every Market, in Every Price Range”

In stark contrast to the recent New Home Sales data, a new white paper from Black Knight suggests that, by the time we include existing homes, there are actually "severe, accelerating, chronic shortages in every market," and "in every price range."   Collateral Analytics (a division of Black Knight) compiles various monthly statistics focused on price, availability, time on market, etc. to arrive at what it refers to as a "market condition rating" (MCR) for the top 100 metro areas in the U.S.  The MCR ranges as follows: "hot, strong, good, normal, soft, weak, distressed" with a majority of the nation tending to fall in the middle 3 categories at any given time. Today's analysis points out that we typically see less than 10% of the market fall into one of the extreme categories,