Back in December, the number of homes on the market fell to a new low. Unfortunately, things only got worse in January.
According to a new report from realtor.com, the number of homes for sale in January fell to below 600,000 for the first time since the real estate website began tracking the data in 2012.
The report showed that the number of active listings in January was down 42.6% from last year, meaning there were more than 440,000 additional homes on the market in January 2020.
As realtor.com notes, the decline is the result of fewer homeowners listing their homes for sale and the available inventory selling fast.
According to the report, there were 23.2% fewer homes listed for sale in January 2021 than they were in the same month in 2020.
Overall housing inventory in the nation’s 50 largest metro areas was down 41.8% in January compared to the previous year.
Combine that with the fact that the typical home spent 76 days on the market in January, 10 days fewer than January 2020. In the 50 biggest metros, the typical home spent 60 days on the market in January, 12 days less than the previous year.
“Demand for housing was already strong coming into the year and we don't see that slowing down with millennials reaching prime home-buying age, and many remote workers still in the market for more space,” realtor.com Chief Economist Danielle Hale said.
“At the same time, sellers failed to materialize in January, which has pushed the number of homes for sale to new lows and suggests that our new normal of rising prices and brisk sales is here to stay at least through the first half of the year,” Hale added.
And according to Hale, things won’t likely improve any time soon.
“Those thinking of getting into the market this spring should brace themselves for a competitive season, especially in the market for existing homes,” Hale said.