Thanks to the combination of fewer homeowners listing their homes for sale and more people wanting to buy a new home, there are fewer homes on the market now than there have been at any point since at least 2012. However, relief may be on the horizon.
Given that inventory has never been lower and prices have never been higher, more people are realizing that now is a good time to sell their house.
Even though home prices continue to rise faster than ever before, more people believe they can afford to buy a home, likely due to sustained record lows in interest rates.
Given how much attitudes towards owning a home changed last year, it’s probably not a surprise that homeownership hit a 12-year high in the third quarter of 2020. What may come as a surprise, however, is the fact that homeownership appears to have fallen back in the fourth quarter by a decent amount.
Back in December, the number of homes on the market fell to a new low. Unfortunately, things only got worse in January.
Much to the delight of homeowners and chagrin of homebuyers, home prices just kept rising in November at a record-breaking pace.
Remember that whole 'home sales are slowing down' thing from last month? Yeah, never mind.
Home prices rose dramatically in 2020. This much is known. But what was the impact of those rising prices on people who sold their homes in 2020? It turns out it was a pretty profitable endeavor.
Considering that the number of homes on the market hit an all-time low in December, an influx of homes for sale is sorely needed. Luckily, it appears that help is on the way.
With home prices continuing to rise at a record-breaking pace, there are quite a few housing markets where homebuyers' money is not going as far as it used to. Luckily, there appears to be a solution: moving to a new city where you can get more for your money.
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