People wait to visit a house for sale in Floral Park, Nassau County, New York, the United States, on Sept. 6, 2020.
Wany Ying | Xinhua News Agency | Getty Images
Exceptional demand for new and existing homes, brought on by the stay-at-home culture of the coronavirus pandemic, has the housing market severely depleted.
Sales of newly built homes jumped to the highest level in 14 years in August, but builders’ supply dropped to just 3.3 months’ worth at the current sales pace. A six-month supply is considered a balanced market. Supply was at 5.5 months in August 2019, according to the U.S. Census.
The situation is even worse in the market for existing homes. It’s down nearly 19% annually to a three-month supply, according to the National Association of Realtors.
“Housing demand is robust but supply is not, and this imbalance will inevitably harm affordability and hinder ownership opportunities,”