The available inventory of homes for sale continues to fall at the end of January. This data is created by a combination of a lack of new listings and an increase in buyer demand. The low level of supply is helping to stabilize prices which were falling in the 4th quarter.

So the question is: have we already seen the bottom for the housing market? Or, is this a temporary blip, a red herring, before an inevitable recession hits or interest rates climb again? 

Everyone has their view of course, but here’s the data as we know it, right now. One thing to keep in mind about measuring housing activity in the U.S. is that so much action happens in the first and second quarters. If you were one of the folks who had a bearish view of the housing market in 2023, the early data is working against you.