During the record-breaking housing boom of the past two years, a drastic under-supply of homes for sale has bedeviled buyers and delighted sellers. Now, the squeeze is slowly easing — a shift that could mark the start of a much-anticipated cooling of the white-hot housing market.
The abnormal conditions of the past two years have been brutal for buyers. Because the demand for homes outpaced supply by such a wide margin, buyers have faced month after month of steep price increases. In desperation, many home shoppers have waded into bidding wars and even waived contingencies for appraisals and inspections.
Housing economists measure the stockpile of homes for sale in months of supply. In January, the number was just 1.6 months, a record low, according to the National Association of Realtors. The figure has ticked up each month since, reaching 1.7 months in February, 1.9 months in March and 2.2 months in April.
