But nationally, inventory is still extremely tight, supporting home values for now. Households have much healthier balance sheets now than they did during the housing crisis, which means there probably won’t be a round of forced selling unless people start losing their jobs. All of that means there’s still a chance that homeowners escape this tightening cycle with their equity intact. They just need a lot to go right.
Jonathan Levin has worked as a Bloomberg journalist in Latin America and the U.S., covering finance, markets and M&A. Most recently, he has served as the company's Miami bureau chief. He is a CFA charterholder.