January 10, 2020
December 2019 experienced the largest year-over-year decline of housing inventory in the United States in almost three years, falling by 12%. As a result, the number of homes for sale is at its lowest level since January 2018, according to realtor.com.
The organization’s December 2019 Housing Trends report revealed that the inventory decline is being experienced across all price levels, including the luxury market. Listings of homes priced above $1 million fell by 4.4%, year over year, while those priced at less than $200,000 declined by 18.1% over the same period. Meantime, mid-tier housing priced between $200,000 and $750,000 fell by 10.2%.
Nor is the inventory shortage anticipated to improve anytime soon. “The market is struggling with a large housing undersupply just as 4.8 million millennials are reaching 30-years of age in 2020, a prime age for many to purchase their first home,” said realtor.com Senior Economist, George Ratiu. “The significant inventory drop we saw in December is a harbinger of the continuing imbalance expected to plague this year’s markets, as the number of homes for sale are poised to reach historically low levels.”
Overall, the median U.S. listing price grew by 3%, to $299,950 in December, with price growth continuing to heat up in metros with large inventory decline.
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