Limited selection in the housing market will impact buyers in more ways than one.Though mortgage rates have fluctuated a bit in January, they're still sitting near record lows, making it
Housing Inventory Hits a Record Low: What It Means for Buyers
Dated: March 31 2021
Though mortgage rates have fluctuated a bit in January, they're still sitting near record lows, making it an appealing time to buy a home. There's just one problem -- there aren't a whole lot of homes on the market.
As of the end of December, housing inventory stood at just 1.07 million homes for sale on a national level, according to the National Association of Realtors. That's the lowest number of available homes since 1982. It also means housing inventory is sitting at a 1.9-month supply, and that gives sellers a true upper hand, as it takes a four- or five-month supply to create a more equalized housing market.
Why today's buyers might really struggle
Limited housing inventory has a number of implications. First, there's cost. When a commodity, no matter what it is, is in short supply, demand for it tends to rise, thereby increasing its price tag. That's the case for homes today. The median price of a home sold in December was $309,800. That represents a whopping 12.9% increase from the previous year, and it's also the highest December median home price on record.
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