Single-family home supply reaches 10.3 months in May

The monthly supply of new single-family homes increased by one month in May to 10.3 months, the highest level recorded since February 2009. This metric shows how many months it would take to sell all homes currently listed at the existing sales pace. Readings above the long-term median of about six months indicate weaker demand relative to supply.

Market conditions Elevated mortgage rates and record homeownership costs have kept many buyers out of the market. Builders have accumulated larger inventories that they are finding harder to sell. Since the 1970s, six of the seven times this indicator reached similar levels, the U.S. economy was already in a recession. The U.S. housing market has rarely been this oversupplied.