by Calculated Risk on 5/17/2021 10:38:00 AM

One of the key questions for 2021 is: Will inventory increase as the pandemic subsides, or will inventory decrease further in 2021?

Tracking inventory will be very important this year.

Click on graph for larger image in graph gallery.

This inventory graph is courtesy of Altos Research.

As of May 14th, inventory was at 314 thousand (7 day average), compared to 729 thousand the same week a year ago.  That is a decline of 57.0%.

A week ago, inventory was at 310 thousand, and was down 57.6% YoY.  Seasonally, inventory might have bottomed - this has been at about the same level for the last eight weeks.  Inventory was about 2% above the low in early April.

Mike Simonsen discusses this data regularly on Youtube.