Is Housing Over-Supplied?

On October 15th Ivy Zelman whom I admire for her work in RE said that the home market is significantly over-supplied and this puzzled many other housing experts. One of them is Logan Mohtashami from Housing Wire, who asks how is this possible when inventory is at all-time lows? I agree. Ivy also said that “home price growth isn’t sustainable.”

Here’s my argument against this for buyers buying a 2nd, or 3rd, or 4th home. These people have probably over $200k in equity in their homes. Yes home prices are soaring but they are soaring on the current home too. So, they can afford a new more expensive home as they may be putting $300k down.