Currently Reading

Why Winter Is the New Spring for the Housing Market

Advertisement

Why Winter Is the New Spring for the Housing Market


January 3, 2020
Spring Bird
Image by Jill Wellington from Pixabay

Spring has sprung...at least for the housing market. Due to high demand and low inventory, the rush to buy that usually began as the snow melted is now in the middle of January. For 20 of the largest cities, the busiest month for 2019 on Realtor.com jumped back three months to January—previously, April held the title for three years straight. By starting early, potential homebuyers hope to edge out competition. But they may still have a rough time: In November, inventory was down 9.5 percent annually, and entry-level homes fared even worse than that, at 16.5 percent down. 

The severe shortage of homes for sale is upending the sales calendar for the whole housing market. Spring has historically been the busiest buying season, but as competition for homes heats up across the country, January is the new April. Spring starts now.

The numbers are telling. From 2015 through 2018, the peak month for average views per listing on Realtor.com was April. January lagged by a full 16%. In 2019, however, January was the busiest month on the site in 20 of the largest 100 metropolitan markets.

Those markets included New York City, Los Angeles, Chicago, Dallas, Houston, Seattle, San Francisco, Atlanta, Denver and San Jose, California. In 2018, January was the busiest month in just three of the largest 100 markets. This year, the expectation is that January will be the strongest month in even more markets.

“As shoppers modify their strategies for navigating a housing market that has become more competitive due to rising prices and low inventory, the search for a home is beginning earlier and earlier,” said George Ratiu, senior economist at realtor.com. “With housing inventory across the U.S. expected to reach record lows in 2020, we expect to see this trend continue into the new year.”

The number of homes for sale in November, which is the latest reading from realtor.com, was down 9.5% annually, and the supply of entry-level homes, priced below $200,000 was a stunning 16.5% lower than in 2018.

Read More

Tags

Related Stories

Sales

Existing Home Sales Switch Course After Months of Decline

Home sales increased 1.4% from May to June, changing its course after four consecutive months of declines. According to data from the National…

Sales

5 Ways to Appeal to Military Homebuyers

Home builders can show their support for military families by following these simple but important steps

Housing Markets

Buyers, Renters Look to Sister Cities for More Affordable Housing

Increased freedom from the office has pushed many homebuyers and renters to seek more affordable areas, but they’re not going too far away. An…

Advertisement
Advertisement

More in Category



Never before have home builders had to navigate a market where houses are pre-selling fast while the cost of so many resources is rising and so many supplies are constrained at the same time


Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.