If your buyer is struggling to find a home for sale, they’re not alone. For every 10 homes for sale last year, there are fewer than five today. Home shoppers this spring have 52% fewer homes to choose from than last year, and they’re facing record-breaking prices, according to realtor.com®’s latest Monthly Housing Trends Report.
The national median list price in March increased to $370,000, a 15.6% jump compared to a year ago and an all-time high, realtor.com® reports.
Because of the high demand and low inventory, “home prices have skyrocketed, shattering previous records,” said Danielle Hale, realtor.com®’s chief economist. “We expect to see more sellers emerge in the weeks ahead, which should give buyers more options. Homes will likely continue to sell fast, but increasing interest rates and monthly costs could slow the pace of price gains unless we see a boost in demand from equity-rich repeat buyers.”
Listing prices increased the most in March in Austin, Texas, up 39.8% annually; Buffalo, N.Y., up 28.3%; and Los Angeles, up 24.8%.
Home buyers appear to be in a hurry. They are trying to buy before any further increases in home prices and mortgage rates, which have moved above their sub-3% averages over recent weeks.
But finding a home hasn’t been easy. ”In many areas of the country, there are half as many available homes for sale than a year ago—and in some markets that number increases to less than one-third,” Hale says.
The National Association of REALTORS® released its Pending Home Sales Index on Wednesday, which showed contract signings fell 10.6% in February, due to inventory shortages rather than a lack of buyer demand. Read more: Pending Home Sales Dip in February
Source: REALTOR® Magazine