Watching the housing market closely…..

It was announced this week that we are at an all time high for number of used homes on the market. New construction continues to sell, while used inventory is cooling down big time.

Interest rates and bloated home values continue to make the housing market a pressure cooker. Trend I have noticed in my neighborhood is that all new construction is under contract/pending, they revamped floor plans to make them smaller and no more finished basements along with slashed prices. Used inventory (2-4 year old houses) are being sold at fire sale prices now. They are selling fast at fire sale prices, but the homeowner left a boatload of equity on the table and are breaking even at best from what they paid for the house just a few years ago.

Below is data from The Kobeissi Letter on X, they track financial trends.

This is broken down by region, I am in the Midwest so we are not seeing the issues that the South is having. TONS of new homes sitting on the market. Comparable in the South to what they went through in 2007-2008. We are sitting slightly better here in the Midwest, while the West is at 2007-2008 levels as well.

Here is all active listings. They are trending upwards in all regions but again, the South is staring down some major problems here soon.