Uugh! Home inventories are at its highest level since October of 1991 and sales levels are at its slowest pace in 5 years according to a report released today by the National Association of Realtors. We’re starting to see some similarities with the savings & loan scandal in 1989 that rocked the real estate market until about 1995. Busch was our president and lending institutions were going under left and right. Today, we still have a Busch as president and numerous mortgage companies are closing its doors. You can get a really good synopsis of the S&L scandal HERE to realize how many similarities there actually are.
Currently there are 4.59 million homes and condos for sale which represents a 9 month supply. What’s notable about this report is that the inventory of condos have been rising much more quickly than inventories of single family homes. While the inventory of single family homes rose 5%, condo inventory rose 20%. The entire report from the National Association of Realtors can be downloaded HERE.