Q1 2023-end Housing Inventory Down To 20 Months From 42 Months In 2018
On the back of significant momentum in the residential property market, housing inventory overhang across the top 7 cities plunged to just 20 months by Q1 2023-end, from 42 months by Q1 2018-end - reaching the lowest in the last five years. ANAROCK data shows that the inventory overhang in the top 7 cities in the last five years was the highest by Q1 2020-end, at 55 months.
Inventory measured in months indicates the number of months it will take for the current unsold housing stock on the market to sell at the current absorption rate. An inventory overhang of 18-24 months is normally considered healthy at any given period.
Anuj Puri, Chairman - ANAROCK Group, says, “Among the top 7 cities, NCR remained the frontrunner in reducing overall inventory overhang in the last five years – from 66 months in Q1 2018 to approx. 23 months in Q1 2023. This is the best the region has seen in the last five years. In fact, inventory overhang in NCR had peaked at 88 months in Q4 2020.”
Source: ANAROCK Research
“In Q1 2023, the top 7 cities recorded all-time high sales of more than 1.14 lakh units," says Puri. "The quarter broke all records and breached the 1 lakh units mark for the first time. Strong homeownership sentiment, relatively lower home loan rates, strong momentum in luxury housing and the anticipation of further price hikes were major factors in boosting housing sales, bringing down the overall residential inventory overhang across the top cities.”
The cumulative unsold stock in the top 7 cities saw a 12% decline in the last 5 years – from 7,13,400 units by Q1 2018-end to approx. 6,26,750 units by Q1 2023-end.
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