The Housing Inventory in the U.S. Has Hit An All-Time Low

Just when we thought that we were seeing a light at the end of the housing shortage tunnel, we have received another blow.

According to Housing Wire, “During the four week period ending November 28, the number of active listings was a 23% decrease compared to the same time period in 2020 and a 42% drop compared to 2019. The number of new listings was also down compared to 2020, dropping 4%, but it was 12% higher than the number of new listing during the same time period in 2019.”

It’s not uncommon for the amount of homes on the market to decrease in the month of December, however, this is the lowest inventory we have seen as a country in quite some time.

“The number of homes for sale typically declines another 15% in December,” Daryl Fairweather, Redfin chief economist said in a statement. “That means that by the end of the year, there will likely be 100,000 fewer homes for sale than there were in February when housing supply last hit rock bottom. I think more new listings will hit the market in the new year, but there will also be a long line of buyers who are queuing up right now.”

Although there continues to be a housing shortage and the weather is getting colder, the demand for homes remains strong and confident. Ever-tightening housing inventory and steady demand has resulted in median home sale prices hitting a new all-time up of $360,375, just two weeks after hitting another all-time high. This marks a 14% year-over-year increase and a 31% increase from 2019. In addition, 43% of homes sold during this period , sold over list price, with the average sale-to-list price ratio coming in at 100.5%.

Experts believe that beside low housing inventory and steady mortgage rates may also be fueling the continued strong levels of demand.