We’re all waiting for Houston’s housing inventory situation to improve…but that has yet to happen.

The inventory situation in Houston continued to worsen in 2014, according to new numbers from realtor.com.

Per realtor.com’s analysis, inventory in Houston dropped by 4.9 percent from November to December, and is down a hefty 25.1 percent from Dec. 2013; so in other words, inventory in our area fell 25.1 percent in 2014.

Inventory and Home Sales – A Cyclical Relationship

It’s the ongoing issue in housing, and one that we just can’t seem to overcome: sales activity is low because inventory is low; until more quality inventory hits the marketplace, sales activity will remain low; but in order for more quality inventory to hit the market, a number of market developments – which we’ve detailed in past coverage – must occur; and thus far, none of those developments have occurred for the majority of potential sellers, and even with Houston’s massive new construction investments, inventory has remained low.

See our graph below for a fuller understanding of how our inventory woes compare with the rest of the nation.