by Calculated Threat on 9/23/2024 11:01:00 AM
At the moment, within the Calculated Threat Actual Property Publication: Watch Months-of-Provide!
A short excerpt:
Each stock and gross sales are effectively beneath pre-pandemic ranges, and I feel we have to control months-of-supply to forecast worth modifications. Traditionally nominal costs declined when months-of-supply approached 6 months – and that’s unlikely any time quickly – nonetheless, as anticipated, months-of-supply is again to 2019 ranges.
Months-of-supply was at 4.2 months in August in comparison with 4.0 months in August 2019. Regardless that stock has declined considerably in comparison with 2019, gross sales have fallen much more – pushing up months-of-supply.
The next graph reveals months-of-supply since 2017. Notice that months-of-supply is increased than the final 3 years (2021 – 2023), and above August 2019. Months-of-supply was at 4.2 in August 2017 and 4.3 in August 2018. In 2020 (black), months-of-supply elevated at first of the pandemic after which declined sharply.
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What wouldn’t it take to get months-of-supply above 5 months? If gross sales keep depressed at 2023 and 2024 ranges, how a lot would stock have to extend to place months-of-supply at 5 months by, say, June 2024?
There may be far more within the article.
