"ICE Mortgage Monitor Report: Housing Inventory Up 32% in May, Alleviating Supply Crunch in Some Regions"
"Housing markets finally see relief as inventory jumps 32%, but supply deficit still persists."
The latest Intercontinental Exchange (ICE) Mortgage Monitor Report, released on Monday, revealed some promising news for the housing market. After years of a supply crunch, housing inventory across the U.S. saw a 32% increase in May compared to the previous year.
This jump in inventory has been a long time coming, with many experts pointing to the lack of new construction as a major factor in the supply deficit. However, while this increase is certainly welcomed, it is important to note that it still falls short compared to pre-pandemic levels, with a 13% supply deficit still remaining.
Some regions have seen a more significant easing of the supply crunch, including the Northeast and Midwest. The Northeast saw a 42% increase in housing inventory, while the Midwest saw a 28% increase. However, other regions, such as the South and West, still have a long way to go, with only a 24% and 17% increase in inventory, respectively.
While this increase in inventory is certainly a step in the right direction, it is not a complete solution to the supply deficit. As Lawrence Yun, chief economist at the National Association of Realtors, notes, "The increase in supply, while welcome, is far from being enough in solving the housing shortage." This sentiment is echoed by other industry experts, who warn that new construction and other measures must be taken in order to fully address the supply crunch in the housing market.