The housing market is off to a respectable start, but the housing shortage strikes again: Inventory hit its lowest point since 2013 in January, and buyers are getting increasingly frustrated. For some, this means entering in a bidding war for their perfect homes. For others, the shortage is forcing them to take their time in their housing search. Though home sales increased by 6.7 percent year over year in January, they were down 1.1 percent compared to December on a seasonally adjusted basis. Year over year, active sales fell 11.4 percent last month, and not one of the 85 largest metro areas reported an increase in active listings.
In the first month of the year, the nation’s home-sale prices increased by 6.7% from 2019 levels, coming in at a median of $306,400, according to Redfin.
Of the 85 largest housing markets Redfin tracks, only three saw a year-over-year decline in the median sale price in January, including San Jose, California; Baton Rouge, Lousiana; and Greenville, South Carolina, which dropped 4.3%, 4.1%, and 1.4%, respectively.
During the month, home sales increased by 6.7% year over year, marking the sixth consecutive month of increases.
Despite this gain, sales were still down 1.1% from December on a seasonally adjusted basis and homes spent two fewer days on the market than they did in 2018.
