Buyers Face Tough Conditions as Housing Inventory Drops 43% Annually
If homebuyers are fed up with the rising home prices and low inventory now, the upcoming spring homebuying season could make this season look effortless. January housing inventory dropped 43% compared to January 2020, according to Realtor.com. New listings also tumbled 23% compared to last year. As a result of the dramatic drops, median home prices grew 15.4% annually to $346,000 last month. Realtor.com warns springtime could be more competitive as a record-low number of homes are for sale and a record number of buyers are rushing to get into the market.
There were 443,000 fewer homes up for grabs this year than last year, before COVID-19 hit the nation. And while builders have ramped up their pace of putting up new homes, that doesn't seem to have made much of a dent yet. The hope is that once more people get vaccinated against the coronavirus, sellers will feel more comfortable listing their homes.
The threat of catching the virus from a potential buyer walking through and having to move in a pandemic has led many sellers to hold off.
Home prices rose the most in the Northeast, by 16.8%, followed by the West, at 12.3%, the Midwest, at 10.4%, and the South, at 8%.