Months of supply as calculated by the NAR continue to grow due to increasing inventory and declining sales. Here are the trends:
Picture #1: Supply, which has been growing on year-over-year basis since the middle of 2005, reached a new high of 11.2 months in July.
Picture #2: Months of supply have been growing quickly, although at slower rates in recent months. The 11.2 months in July was 1.7 months higher than the 9.5 months measured in July of 2007.
Picture #3: The 11.2 months in July more than doubles the months of supply from every other July during the first half of the decade.
Like every other real estate metric, months of supply is subject to seasonality. It will dip this fall, and when it does, we'll be measuring it on a year-over-year basis.
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