Inventory Conditions Improve Slightly But Still Lags Demand in May

In May, REALTORS® generally reported strong buyer demand against a low but slightly improving inventory. The Buyer Traffic Index rose to 72, well past the mark of 50 that delineates “moderate” conditions. The Seller Traffic Index registered at 43 (41 in April).

There were reports of slightly improving inventory conditions although in many areas of the country, REALTORS® reported low inventory levels of homes for sale with not enough REOs and listings coming into the market. Tight inventory conditions have been cited as leading to higher prices and reduced time on market. The information is based on the May REALTORS® Confidence Index (RCI) Survey.

Jed Smith, Managing Director, Quantitative Research

Jed Smith is Managing Director, Quantitative Research with the National Association of Realtors®. He has worked on real estate issues for the past 20 years, providing input on a variety of housing, commercial real estate, tax, and planning issues. Recently he has been involved in several international studies.

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