We don’t know where the bottom is when it comes to the number of houses on the market. There were five times as many houses on the market in May of 2012 as there are today. Even though prices are maybe 40% higher than they were a decade ago the total dollar value of all of the houses on the market is lower.
Volume doesn’t mean all that much to consumers but it is important to real estate agents and companies. Real estate companies need to bring on more agents if they want to increase their profits. During the first quarter of this year, there have been some disappointing earnings reports.
Here is what the last decade looks like as far as the number of houses on the market each month and the dollar value of those houses. Going forward I am going to predict that we did hit bottom for the lowest number of houses in the market during the first quarter of 2022. However, the seller’s market will remain strange for the next several years as the demand for houses will remain strong and the supply low.