Years supply of listings
We are looking for a primary home in a resort area that has been badly hit by the real estate implosion. Our previous home is finally under contract and now we have to take the next step. We don't have to buy right away but it would save the hassle of moving twice, paying for storage and the worry about interest rates.
I read a local real estate blog/analysis that calculates "years supply of listings" or the number of listings divided by the previous month's sales. It started at 2.8 earlier this year and is now about 2.2.
The supply of houses concerns me as well as the large amount of bank owned homes and their effect on future sales prices.
We aren't concerned about getting in at the very bottom but we don't want to throw caution to the wind.
Buy or sit??? Thanks for reading.