New home inventory is at its highest level since just before the housing market collapse that led to the Great Recession, but that doesn't mean it's the same market

"The U.S. housing market's inventory is growing, putting pressure on prices and slowing new construction, according to fresh research from the Bank of America Institute. As of June, existing-home supply reached 4.7 months, the highest level since July 2016. New-home supply surged even further to 9.8 months-its highest point since 2022-highlighting how quickly inventory is building across the housing market."

""The Pandemic Housing Boom saw too much housing demand all at once, home prices overheated too fast in many markets, and underlying fundamentals got too stretched." Lambert characterized the last few years as a "recalibration period" where the housing market is smoothing out that excess. Mounting inventory sucks out appreciation in more markets-and even causes outright corrections in some markets' home prices. He said he expects the underlying fundamentals to slowly improve as that happens and incomes keep rising. "It takes time.""

Existing-home supply reached 4.7 months in June, the highest since July 2016, while new-home supply climbed to 9.8 months, the highest since 2022. Inventory growth reflects weak demand driven by lower buyer urgency, affordability challenges, and lingering job instability. New-home inventory has reached levels not seen since 2007. Rising inventory is increasing buyer leverage, reducing appreciation, and causing price corrections in some markets. The median new-home price has fallen below existing-home prices as builders discount to move stock. Builders are starting to pull back on new starts amid softer demand and rising unsold inventory.

Read at Fortune