CoreLogic analyst Shu Chen looks at the latest harvest of CoreLogic data on for-sale inventory supplies, breaking the data down into four price bands and filtering for geography. Oil economy-dependent markets are starting to show increases in supply. The analysis also looks at time-on-the-market data for for-sale listings, which is still showing robust demand.
Chen notes that usually the high-price tier has the largest supply and the low-to–middle price tier has the lowest supply. At the peak of the housing crisis, supply of homes in the high-price tier was more than 21 months, while middle and low price tier supply was 15 months. Now, the national tally of all four price tiers is 6.8 months, which is up from 6.5 months a year ago. Chen writes this about specific markets that are changing:
However, some oil markets were impacted by low oil prices. The supply in Houma, La., and Oklahoma City, Okla., increased 2.5 and 1.3 months respectively in January 2016 compared to a year earlier. The months of supply in the Houston metro area increased from 5.9 months in January 2015 to 7.1 months in January 2016. Denver and San Francisco had the lowest months of supplies of 1.7 months and 2.6 months, respectively.