Housing Supply Hits Record Low, Igniting Prices

From CNBC article by Diana Olick

The number of homes for sale at the end of November was the lowest on record for the month, according to the National Association of Realtors, which began tracking this metric in 1999. There were just 1.66 million homes on the market, down 5.7% compared with November 2018. That represents a 3.7-month supply at the current sales pace, down from a 4-month supply a year ago.

Supply is leanest on the low end, where demand is strongest. For homes priced below $100,000, inventory was down 15% annually. For those priced between $100,000 and $250,000, supplies were 7% lower annually. Supply is only growing on the high end of the market, where demand is weakest.

 

  • The number of homes for sale at the end of November was the lowest on record for the month, according to the National Association of Realtors, which began tracking this metric in 1999.
  • There were just 1.66 million homes on the market, down 5.7% compared with November 2018. That represents a 3.7-month supply at the current sales pace, down from a 4-month supply a year ago.
  • For homes priced below $100,000, inventory was down 15% annually.

 

“Low mortgage rates, a resilient labor market and sustainable home value appreciation combine to offer enticing buying conditions,” said Matthew Speakman, an economist at Zillow. “But a deepening and worrisome inventory shortage, particularly at more-affordable price points, continues to constrain the market and muffle the optimism of many would-be buyers itching to capitalize on these favorable trends.” Matthew Speakman – Zillow Economist

About the author

Michael Mahoney

Michael Mahoney

Boston Realtor

Michael Mahoney is a full time Realtor in Boston, Massachusetts. Michael covers most of Greater Boston. Michael's focus areas are primarily Norfolk and Suffolk Counties. You can reach Michael via email at mike@mmahoney.com or via phone at 617-615-9435. Michael is a sales agent affiliated with Century 21.

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