Based on current macro regime conditions and months supply of houses's historical behaviour in similar regimes, the model projects 10.54 by 2026-12-31 ( +2.3% from 10.3 today). The 68% confidence range is 7.99 to 13.09; the wider 95% range is 5.55 to 15.53. Methodology below the headline.
Months Supply of Houses Forecast 2026
Quantitative analysis from 298 observations of Months Supply of Houses history, joined to four universal macro regime classifications. Numbers are computed, not narrated.
Performance by Window[02]
| WINDOW | N | ANN RET | ANN VOL | RET/VOL | HIT % | TOTAL |
|---|---|---|---|---|---|---|
| 1Y | 13 | 7.30% | 37.79% | 0.19 | 50.0% | 7.29% |
| 3Y | 36 | 10.49% | 30.01% | 0.35 | 45.7% | 33.77% |
| 5Y | 61 | 13.37% | 32.09% | 0.42 | 46.7% | 87.27% |
Forecast Approach
regime implied: The current macro regime classification (Goldilocks, Reflation, Stagflation, or Deflation) dictates the expected direction and magnitude of movement, calibrated against historical regime performance.
Key Drivers & Risks
- •Mortgage rates
- •Housing supply
- •Demographics
- •Construction costs
- •Credit availability
Historical Volatility
Moderate: housing cycles are multi-year
Frequently Asked Questions
What factors could push Months Supply of Houses higher?▾
The primary drivers that tend to lift Months Supply of Houses depend on the current macro regime. Housing is the most interest-rate-sensitive sector of the economy and often the first to roll over heading into a downturn. Mortgage rates feed directly into affordability and demand, while building permits signal future supply. Home price indexes like Case-Shiller capture the wealth effect that drives consumer confidence and spending. Convex tracks these drivers live across the Housing category and flags when multiple forces align in the same direction. See the "Key Drivers & Risks" section on this page for the current list, and check the regime dashboard for how the macro backdrop is currently tilted.
What factors could push Months Supply of Houses lower?▾
The same transmission channels that drive Months Supply of Houses higher operate in reverse when conditions flip. The risk drivers listed above map directly to scenarios that, if triggered, would pull this metric in the opposite direction. Convex aggregates these into a scenario-weighted probability distribution rather than a point forecast, so the magnitude depends on which scenarios activate.
Where does consensus see Months Supply of Houses heading?▾
Rather than publish a point target that goes stale the day after release, Convex assembles consensus from the macro regime classification, active scenario probabilities, and historical base rates. Point forecasts from banks and strategists are worth reading for context, but they typically cluster around the consensus and miss the tail events that actually move markets. The scenario-weighted approach here captures that tail risk explicitly.
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Forecasts are model-based projections derived from current regime classification, scenario probabilities, and historical patterns. They are not investment advice. All investments involve risk.