Humble Housing Market Inventory Report

Humble Housing Inventory Between $270,000 And $300,000

Months of Inventory	Sold Data – Prev. 1 Year		Current Active Data
	Number Sold	Average Price	Number Active	Average Price
8.6	64	$285,046	46	$299,551

Inventory Level Explained

Earlier today a question came in on Trulia Voices. A potential home buyer had inquired about the current inventory of homes at $300,000. Since the inventory level for a single specific price is not very useful I have chosen to form a price point defined by $300,000 plus or minus ten percent, giving us the bounders of $270,000 to $330,000. Using this price range we get an average price of active homes at $299,551.
The Humble inventory level for this price range came in at 8.6 months of inventory which is considered buyer’s market territory. Nearly all economists would agree that an inventory level in excess of 7 months leaves buyers in the driver’s seat when negotiating a transaction. Furthermore we generally see price declines occur when inventory exceeds 9 months. With this price point sitting at 8.6 months of inventory I would be inclined to suggest that we may see price declines assuming that over the next couple of months we do not see the inventory absorbed.