The severe shortage of homes for sale is upending the sales calendar for the whole housing market. Spring has historically been the busiest buying season, but as competition for homes heats up across the country, January is the new April. Spring starts now.
“As shoppers modify their strategies for navigating a housing market that has become more competitive due to rising prices and low inventory, the search for a home is beginning earlier and earlier,” said George Ratiu, senior economist at realtor.com. “With housing inventory across the U.S. expected to reach record lows in 2020, we expect to see this trend continue into the new year.”
Home price gains had been shrinking in the first
half of 2019, but those gains began to pick up again in September and
continued in October, according to the latest S&P CoreLogic
Case-Shiller Home Price Indices. Price increases are broadest on the
lower end of the market, while they are softening slightly on the high
end.
With more buyers jumping into the market in January, this year’s spring market will likely see even fewer homes for sale. Current homeowners are reluctant to give up what they have, given how pricey the market is now, so it is up to the nation’s homebuilders to ease the supply crisis. They are increasing production slowly, but have not fully focused on the lower end of the market, where supply is leanest.
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With more buyers jumping into the market in January, this year’s spring market will likely see even fewer homes for sale. Current homeowners are reluctant to give up what they have, given how pricey the market is now, so it is up to the nation’s homebuilders to ease the supply crisis. They are increasing production slowly, but have not fully focused on the lower end of the market, where supply is leanest.
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