In-Depth Analysis

May 2009

Resale and New Home Inventory

The graph below displays a strikingly similar pattern between two inventory measures for the Resale Home market and the New Home market up until about 18 months ago. Since that time, the quantity of new home subdivisions has steadily declined while the resale inventory has remained fairly constant. The growing presence of REO’s in the resale market is the primary reason that resale inventory has not fallen.

What is the Significance?

If you are trying to understand the local Real Estate Market, New Homes, traditional Resale Homes and REO’s must all be considered. These market components are all interrelated.

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