In 2015, the inventory of homes for sale fell to its lowest levels since the housing crisis as demand strengthened and many young people decided it was time to finally take the step toward becoming homeowners. In January 2015, the number of homes for sale nationally was equal to a 6.5-month supply. In January 2016, that number rose slightly to a 6.8-month supply, Corelogic.com reports.
The inventory of homes can be broken down further into different price tiers. The low price tier consists of homes that are at 0-75 percent of the median list price, low-to-middle price has homes 75-100 percent of the median list price, middle-to-moderate price includes homes 100-125 percent of the median list price, and the high price tier consists of homes 125 percent or more of the median home price. Typically, the high tier has the largest supply and the low-to-middle tier (think entry-level or starter homes) has the lowest supply. January 2016’s supply abided by this rule.
The low price tier had a 7.2-month supply in January 2016, up from a 6.8-month supply in January 2015. The low-to-middle price tier had a 5.9-month supply (the lowest of any tier) and actually decreased from January 2015’s 6.2-month supply. The middle-to-moderate price tier had a 6.2-month supply, which was also a decrease from the 6.5-month supply of January 2015. The high-price tier had a 9.3-month supply, an increase of a full month of January 2015’s 8.3-month supply.
Additionally, the amount of homes that sold within the first 30 days of being listed was at 16.3 percent in January 2016, which was almost as high as the 2015 peak. However, the number of homes on the market for more than 180 days also increased in January 2016 to a share of 23.1 percent, higher than the 2015 average of 22.4 percent. This level peaked in 2009 at 32.1 percent.
Places that saw the greatest increase in their housing supply were areas that were affected most by low oil prices. Places like Houma, La., and Oklahoma City, Okla., saw their supply increase 2.5 months and 1.3 months respectively. Meanwhile, San Francisco and Denver had the lowest supplies at 1.7 months for the Bay Area city and 2.6 months for the Mile High city.
For the full report and to view accompanying charts and graphs, click the link below.
