{"id":4184,"date":"2023-05-18T22:26:57","date_gmt":"2023-05-18T22:26:57","guid":{"rendered":"https:\/\/frankbuysphilly.com\/is-the-savagely-unhealthy-housing-market-back\/"},"modified":"2023-05-18T22:26:57","modified_gmt":"2023-05-18T22:26:57","slug":"is-the-savagely-unhealthy-housing-market-back","status":"publish","type":"post","link":"https:\/\/frankbuysphilly.com\/is-the-savagely-unhealthy-housing-market-back\/","title":{"rendered":"Is the savagely unhealthy housing market back?"},"content":{"rendered":"
\n<\/p>\n
Just when I thought days on market were returning to normal, that number for existing homes fell back down to 22 days. Why is this so important to me? If the days on the market are at a teenager level or even lower, it\u2019s never a good sign for the housing market<\/a>. I would say it\u2019s savagely unhealthy<\/a> to have that level and even though we’re not there yet, we are dangerously close. <\/p>\n To even get close to that level, we either have a massive housing credit boom, which will eventually turn into a bust, or we have a shortage of homes, meaning too many people are chasing too few homes.<\/p>\n We don\u2019t have a massive credit boom as purchase application data<\/a> is at historical lows; we haven’t had the same run-up in credit as we saw from 2002-2005. This is why I always draw the black line on the chart below \u2014 to show people that we haven’t had a credit boom for many years. If we had a massive credit boom-to-bust, inventory<\/a> would have skyrocketed in 2022.\u00a0<\/p>\n