Prospective homebuyers were in for some of the worst market conditions imaginable last week, according to a report from Redfin.
The number of homes on the market hit a historic low during the week ending Nov. 28, Redfin reported: fewer than 539,000 active listings, a 26 percent year-over-year decline. The previous low point this year was in February when about 577,000 homes were for sale.
For the four-week period ending Nov. 28, active listings declined 23 percent from 2020 and 42 percent from 2019.
With demand still strong and supply low, house prices rose. The first four weeks of November resulted in a record median sale price of $360,375, surpassing the July 25 mark of $359,637. The median sale price represents a 14 percent increase year-over-year from 2020 when it was $316,000, and a 1.5 percent gain from the previous month.
Sellers are aware that the housing market is working in their favor. Asking prices for newly-listed homes in the four-week period were up 12 percent from 2020 and 27 percent from 2019.
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Updated: Boston Real Estate 2021
Boston Massachusetts Condos
The Massachusetts Association of Realtors has released its May housing numbers.
And you guessed it: Sales down again last month in Massachusetts (by 9 percent for single-family homes and 1.1 percent for condos) while prices continue to soar ($347,900 median price for single families, up 7 percent; $316,000 for condos, up 9 percent).
The main culprit: Lack of supply.
But it’s still not nearly enough to meet demand. It’s ridiculous.
When is it going to change?
Update – 2020
Inventory issues continue to plague first-time homebuyers while competitive pressures have sparked bidding wars. By the end of August, there was only a two-month supply of housing available for sale, which is a historic low.
Here ins St. Paul there is a 1.8 month supply which is the lowest we have seen since December of 2018 when there was. 1.7 month supply. Minneapolis also has a two month supply.
Same old story. Lots of buyers and few sellers. In past decades we were able to build our way out of housing shortages. This time around there is little new construction and what there is is very expensive.
Filed under: Inventory blues