Housing inventory tracks active homes for sale and converts supply into a mo-based metric: total active listings divided by avg. monthly sales for clearer context.
A 5-to-6 mo supply signals balance. 6 mo gives buyers more choice and potentially more competitive pricing conditions.
National inventory remains tight partly because homeowners with lower existing mortgage rates hesitate to move, while post-2008 construction backlogs still affect supply.
Middle-income buyers face fewer affordable options because today's listings skew higher-priced; a balanced market would need more entry-level homes nationwide to broaden access.
An expert estimate says the construction shortage may take ~10 yr to resolve, making supply tracking important for long-term planning nationwide for buyers.
