Stop us if you’ve heard this one: There isn’t enough inventory in the housing market.
It’s a well-worn refrain, but a new analysis from Trulia offers a conclusion so simple it seems silly. Too little fresh supply — new homes being built — is far and away the single biggest contributor to the meager level of housing inventory.
Anyone keeping tabs on the housing market is familiar with the low-construction theme. While the pace of new-home sales has perked up over the past few years, they still represent only about 69% of their long-run sales pace.