U.S. housing inventory hits a 13-year low
As record-low mortgage rates drove buyer demand, home sales and prices spiked in September and supply and market days shrank, according to Remax.
Housing stock plummeted like a rock, falling 31.9% year over year and 6.5% from August to its lowest level in 13 years according to Remax’s National Housing Report. The national offer fell in September from 3.8 months in the previous year to 1.8 months.
Among the 53 largest markets, the lowest inventory levels were recorded in Boise, Idaho, at 0.5 months, Albuquerque, NM, at 0.7 months, and Manchester, NH, and Omaha, Neb., Both at 0.8 months. A 6 month delivery defines the balance.
Closed transactions played an important role in the shrinking supply. While sales fell 3.3% in September compared to August, they rose by 21.1% annually. Billings, Mont., Led the subway areas with a 37.1% increase from September 2019. San Francisco and Hartford, Conn., Followed, with gains of 34.7% and 33.3% respectively.
Current conditions have created a competitive environment for homebuyers in which the credit and housing industries are operating at full speed despite the pandemic.
“Demand is not currently on the charts. Buyers of all ages are determined to enter the marketplace to improve their quality of life through the convenience, community and the unrivaled security that comes with home ownership,” said Adam Contos, CEO of Remax, in which Report. “They are working on the challenges of tight inventory, high prices and competing offers to take advantage of the historically low interest rates and, in many cases, the greater mobility they now enjoy through remote working that goes into the next year. “
When stocks ran out, prices continued to rise. The median September sales price of $ 289,900 fell just $ 100 – 0.00035% – from August and rose 12.8% year over year. The largest annual growth was in Augusta, Maine, with 25.1%, in Tulsa, Okla. Achieved with 21.7% and in Indianapolis with 21%.
The frothy environment reduced the average time listings were on the market to 39 days in September from 41 in August and 46 last year. Omaha and Cincinnati tied for the fewest days at 17, while Nashville, Tennessee was in third place at 21 days. Miami’s average of 92 days had the longest listing time, followed by 90 days in Des Moines, Iowa and 79 days in New York.