As these figures prove, the inventory crisis, is no longer a crisis in the sense that we are expecting to see some relief in the not too distant future. Now, for the last nine consecutive quarters, inventory has fallen, on a national basis, and in New Jersey, has cratered.
Shortages also known as scarcity always impacts price; and in this case, the shortage is being reflected in affordability and in the DOM also known as days on market.
The share of homes still on the market after two months is now at its lowest since 2012.
Over the past five years, in 2012, 57% of homes were still on the market after two months; in 2017, 47% of homes were still on the market after two months.
Slow Moving Markets
The slowest moving markets are predominantly in the South and Northeast. Each of the top 10 slowest moving markets are east of the Mississippi, with the highest concentration in Florida and South Carolina. For example, more than 54% of homes are still on the market after two months in three large Florida metros – Sarasota (54.2% and number ten on our list), Cape Coral-Fort Myers (56.3% and number six on our list), and Miami (62.3% and number one on our list), while two of the largest markets in North Carolina – Winston-Salem (57.5%) and Greensboro-High Point (57.2%) – make the top five. The other two markets to make the top five slowest moving markets are Fairfield County, Conn., (60.8%) and Knoxville, Tenn., (57.4%).