Big cities see big dips in housing inventory
As builders struggle with the rising cost of labor and building goods, the number of homes for sale has declined.
According to the National Association of Realtors, available inventory plummeted to a 3.9 month supply at the end of October. A six-month supply is generally considered to mean the market is at a healthy level.
According to Zillow, the market with the biggest drop in inventory was Seattle, which lost 28% in October, compared to 2018. Shortly following is Cincinnati, which lost 18%, and Washington, D.C., down 17%.
Also on the list was Austin, Texas, -14%; Kansas City, -16%; Las Vegas, -14%; Orlando, -10%; Phoenix, -15% and Pittsburgh, -16%.
In California, where home prices are the highest, there is also a drop in supply in all of its major markets.
According to the RE/MAX National Housing Report, in October, home sales rose by 3.9% nationwide, marking the fourth month of the past six to post a year over year increase in sales.
However, for the last six months, inventory has continued to fall.
The supply of homes for sale fell 9.1% year over year in October, the biggest decline since April 2017 and the fourth month in a row of declines, according to Redfin.
The national median home price was up over 6% compared to a year ago, the highest annual growth rate in more than two years, CNBC said.
Realtor.com also said that the average American home listing price in October climbed 4.3% year over year, reaching a high of $312,000.
Mortgage rates also dropped this year, attracting more and more buyers. As demand for little to no inventory goes up, so do the for-sale prices.
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