Housing Market Update: Months of Supply Shows Signs of Balance

One of the most reliable ways to measure the health of the housing market is by looking at a key metric called “months of supply.” This number tells us how long it would take to sell all the homes currently available for sale, assuming the pace of home sales stays the same.

• Low months of supply = seller’s market (fewer homes, more competition, higher prices).

• High months of supply = buyer’s market (more homes available, buyers have leverage, prices may soften).

• Six months of supply is widely considered a balanced housing market where neither buyers nor sellers have a major advantage.

Where the Housing Market Stands Today

According to the National Association of Realtors’ August Housing Report, the U.S. is currently sitting at a five-month supply of homes for sale. That’s the closest we’ve been to balance in nearly a decade and the first time since 2016 that the summer housing market has seen this level.

Danielle Hale, Chief Economist at Realtor.com, explains:

“The national housing market is now more balanced between home buyers and sellers at five months of supply, but that balance conceals a wide range of local realities. In Miami, Austin, and Orlando, buyers are clearly in control, while in metros like Milwaukee and Boston, sellers remain firmly in the driver’s seat.”

What This Means for Buyers and Sellers

This latest data shows that the real estate market is becoming more balanced overall, but your local housing conditions will determine your true experience.

• Buyers may see more opportunities in markets with higher inventory levels.

• Sellers in strong demand areas may still benefit from competitive offers.

The key takeaway: while the national housing market is showing signs of stability, real estate remains hyper-local.

Final Thoughts

If you’re considering buying or selling a home, now is the perfect time to evaluate your options and understand how your local market compares to national trends.

📞 Have questions about the housing market or your mortgage options? Contact me today—I’ll help you make sense of the numbers and find the best strategy for your situation.