If homebuyers are fed up with the rising home prices and low inventory now, the upcoming spring homebuying season could make this season look effortless. January housing inventory dropped 43% compared to January 2020, according to Realtor.com. New listings also tumbled 23% compared to last year. As a result of the dramatic drops, median home prices grew 15.4% annually to $346,000 last month. Realtor.com warns springtime could be more competitive as a record-low number of homes are for sale and a record number of buyers are rushing to get into the market.
There were 443,000 fewer homes up for grabs this year than last year, before COVID-19 hit the nation. And while builders have ramped up their pace of putting up new homes, that doesn't seem to have made much of a dent yet. The hope is that once more people get vaccinated against the coronavirus, sellers will feel more comfortable listing their homes.
The threat of catching the virus from a potential buyer walking through and having to move in a pandemic has led many sellers to hold off.
Home prices rose the most in the Northeast, by 16.8%, followed by the West, at 12.3%, the Midwest, at 10.4%, and the South, at 8%.
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