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Friday, 28 February 2020
Agent Resource Center
Agent Resource Center

Supply of homes for sale hits record low, and prices suddenly jump

Written by Posted On Friday, 24 January 2020 01:31
  • Demand is surging because mortgage rates are about a full percentage point lower than they were a year ago, and the largest generation, millennials, are aging into their homebuying years.
  • That demand pushed the supply of homes for sale down 8.5% annually to the lowest level since the Realtors began tracking inventory in 1982.
  • The huge imbalance between supply and demand caused the median home price in December to jump 7.8% annually, the biggest annual increase in almost four years.
GS: New home construction 161117
A worker stands on the roof of a home under construction at a new housing development in San Rafael, California.
Getty Images

Buyers are trolling the nation’s neighborhoods looking for homes at the fastest pace in nearly two years, making an already critical shortage of inventory even worse.

Sales of existing homes rose a steeper-than-expected 3.5% in December compared with January, according to the National Association of Realtors.

 

Demand is surging because mortgage rates are about a full percentage point lower than they were a year ago, and the largest generation, millennials, are aging into their homebuying years.

That demand has pushed the supply of homes for sale down 8.5% annually to the lowest level since the Realtors began tracking inventory in 1982.

At the current sales pace, the total supply would sell out in just three months. A six months’ supply is considered a balanced market.

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Kate Winslet

Kate Nelson Winslet grew up in Los Angeles city and graduated with a degree in Court and Conference Reporting.  She currently resides in Boynton Beach with her husband Richard and two dogs.  Prior to her 13-year-plus Real Estate tenure, she was a court reporter in the New York City metropolitan area. 

Kate has personally built two homes from the ground up - one in Boca Raton and one in Delray Beach - helping to supervise all phases of construction, as well as decorating and renovating other homes.  I have owned four homes in the 22 years I have been in Florida - two in Boca, one in Delray and one in Boynton, along with three rentals in between.  My understanding of the real estate market in Boca, Delray, Highland Beach and Boynton Beach is extensive.  I help to ease the stress of the home-buying experience for my clients.  I am available 24/7 to aid them even further.  I can be reached by email at katewinslet@ladacor.com or at (561) 716-7824 cell/text.

Kate is all too aware of the challenges facing many people moving to the Boca Raton area with their beloved pets.  There are many restricted communities that do not allow pets.  An avid dog lover and owner, Kate is very familiar with all the communities that will accept them.  

Kate has earned the following designations from the National Association of Realtors and has been elected a member of the 2018 Grievance Committee of the Palm Beach Board of Realtors and the Greater Fort Lauderdale Board of Realtors:

CRS - Council of Residential Specialists

ABR - Accredited Buyer's Representative

GRI - Graduate Realtor's Institute

e-PRO - Internet Certified Professional

Click here to see full bio: https://www.ladacor.com/contact-us/

Kate is involved with the ASPCA, Breast Cancer Awareness and local pet charities. 

Please stop by and read my blog.   If you'd like to subscribe to my blog, please email me at Katewinslet@ladacor.com.

Member National Association of Realtors, Florida Association of Realtors, Realtors Association of the Palm Beaches, REBAC (Real Estate Buyers Council) and CRS (Certified Residential Specialist.)  2018 Grievance Committee Palm Beach Board of Realtors & Greater Fort Lauderdale Realtors. 

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