These stats confirm the trends we are observing in our real estate business. The months of supply have slightly increased to 3.1 in April from 2.6 in February. This is not a big jump but it may be something to watch for. The Average Sale to Original List Price ratio went down from 95.5% in February to 95% in April. If the supply of homes increases, even more, we may see additional pressure to reduce prices.
What we noticed lately is that many landlords who couldn't sell before are listing their homes and that's increasing the inventory. Meanwhile, the rental market is going up because all these homes were taken out of the rental market. Would this trend continue? We think yes until prices fall.