The seasonally-adjusted number of homes for sale fell to an all-time low in November after an 18% year-over-year decrease, according to Forbes. Low supply caused the median sale price to jump 15% to $383,100, marking the 16th consecutive month of price gains leading up to an unusually heated winter market.
Market experts predict that inflation could also play a serious role in housing affordability throughout 2022 as home buyers face increases for consumer goods. With tighter budgets to accommodate more expensive gas prices and grocery trips, many buyers may be priced out of a stiff housing market.
November marked the 16th consecutive month of double-digit price gains, and so far in December there are no signs of the typical seasonal slowdown in price growth that usually comes at the end of the year. Seasonally-adjusted closed home sales and new listings of homes for sale both fell from a year earlier, by 6% and 9% respectively, and the average home sold for 0.6% more than list price.
“I wish I had better news for home buyers this holiday season, but in many ways the housing market is more challenging than ever,” said Redfin chief economist Daryl Fairweather. “At least buyers have the benefit of low mortgage rates. But by next year, inflation may spread to more consumer goods. So even though our new year’s forecast includes more listings and slower home-price growth, buyers may feel so pinched by other expenses that they have to reduce their housing budgets.”