Will the Housing Shortage Ease up in 2020?

Buying picked up in September, thanks to the low mortgage rates seen in the past few months. Yet builders have not been able to match pace. Even homes in non-entry-level markets could get scarce as experts expect the housing shortage that plagues much of the nation to get worse, despite easing up in 2019. 

While the shortage of homes for sale never eased much in the Washington, D.C., region, the pressure on buyers was slightly reduced for much of the country over the past year or so.

But now, according to Realtor.com’s September 2019 Housing Trend report, the national market appears to be heading for a new inventory shortage. The problem of limited listings has always been worse for entry-level houses.

Realtor.com’s latest report shows that increased demand stemming from lower mortgage rates led to a 10 percent decline in available homes priced under $200,000 in September 2019, compared with September 2018. In addition, the report found that after 18 months of steady increases in the number of homes for sale priced in the mid-market range, defined as homes priced between $200,000 and $750,000, available inventory remained flat.

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