Homebuilding Activity Rises – Helping To Cool the Market
According to data from the Census Bureau housing starts rose by nearly 10% in February as compared to the month prior. And though housing starts did rise, they were still down 18.4% from February 2022. Even while this is a move in the positive direction, we may not see impact on the housing market until later this year or 2024.
According to the ascent, as of the end of February, there were only 980,000 available housing units for sale on a national level, according to the National Association of Realtors. That represents a mere 2.6-month supply of homes.
However, it commonly takes a minimum of a 4-month supply of homes to equalize the housing market. And in many cases, it really isn’t until we get to a 6-month supply where there’s enough inventory to fully meet buyer demand.
An uptick in February housing starts might provide eventual relief for home buyers. But let’s remember that it takes time — often a lot of it — for a home to get completed once construction begins.