House Report: Inventory Gaining, With Notable Exceptions

Pro Teck Valuation Services’ monthly Home Value Forecast uses a number of leading real estate market-based indicators to report on activity in the single-family home markets in the U.S., and concludes the market is slowing down.

Pro Teck Valuation Services’ monthly report of housing inventory is showing an increasing number of markets that have a balanced supply, which is good news for buyers. A key measure, Months of Remaining Inventory (MRI), is calculated by dividing the number of households on the market by the number that sell every month.

Last year, 12.6% of markets had MRIs below three months, which is decidedly a seller’s market. That percentage has dwindled to 3.1% of the markets today, says Pro Teck. The seller’s markets are:

  • Boise, Idaho
  • Tacoma-Lakewood, Wash.
  • Olympia-Tumwater, Wash.
  • Denver-Aurora-Lakewood, Colo.
  • Chico, Calif.
  • Bremerton-Silverdale, Wash.
  • San Jose-Sunnyvale-Santa Clara, Calif.

The good news, says Pro Teck, is that two-thirds of the metros it tracks have Months of Remaining Inventory between four and eight months, the range normally accepted as a healthy and balanced housing market. Pro Teck notes that the market with the most momentum at the moment is Washington, D.C., and its surrounding suburbs, including Alexandria, Va., where Amazon will locate its HQ2. Price appreciation in the region is highly correlated with employment gains and should continue as Amazon’s presence increases.

The report showed a significant increase in markets where Months of Remaining Inventory exceeds six months: In 2018, that percentage was 30.4%; in 2019, it is 46.7%.

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After earning her bachelor’s degree in journalism at the University of Central Florida, Tracey set out in the real world at Florida Realtors in 1994 as a communication assistant, working her way up to editor in chief of Florida Realtor magazine. In 2004, she left the association to start her freelance writing and editing business. One of her first clients was REAL Trends, and she started working for the organization in 2005. In 2014, Tracey was promoted to editor in chief of publications for REAL Trends. She handles the writing and editing of all REAL Trends publications and marketing materials, including LORE Magazine, the REAL Trends newsletter and the blog. She is also the primary podcast interviewer where she conducts interviews with top real estate industry leaders and affiliated industry leaders. Tracey is married with two children.

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