There’s an Unusual Thing Happening in the Housing Market

Bloomberg, Sept. 16, 2022–Tracy Alloway
The rapid pace of rate hikes has resulted in an interesting statistical anomaly. Months of supply — or the number of months it would take for the existing inventory of homes on the market to sell at the current sales pace — has jumped to 4.1 from a record low of just 2.1 back in January of this year. And, as Morgan Stanley strategist James Egan notes, rarely have we seen an increase of this size.