The potential solutions that could possibly change the trajectory of massive shortages of homes for sale will rest upon home builders who will build on the available buildable lots in order to fill in the gaps.
The National Association of Realtors this past week reported what could possibly change the trajectory of the massive shortage of homes for sale will rest upon home builders who will need to build in order to fill in the gaps.
The National Association of Realtors [NAR] this past week reported that the number of homes for sale at the end of November was the lowest on record. The NAR reported that there were 1.66 million homes for sale on the market, which represents a 5.7% decrease from 2018. According to the NAR metric, this represents a 3.7-month supply of homes based upon the current sales rate.
What is especially disconcerting is that the supply-of-homes usually ascribed to first-time homebuyers, those within $100,000 to $250,000, is shrinking at a faster rate than the general supply of homes. The number of homes reported available for sale below the $100,000 price fell by 15% annually. The inventory price between $100,000 and $250,000 fell by 7% on an annual basis.
Additionally, the median price for an existing home sale in November, according to the report issued by the NAR, hit $271,300, which is the highest November price recorded since the associations began tracking back in 1999.
Within this burgeoning economy, demand continues to surge, driving prices consistently higher but not like had been seen in the years preceding the market crash of 2008. The first-time homebuyer represents just 32% of all sales, which is down from the historic norm of 40%.
This market is also impacting markets that typically do not participate in a strong booming real estate market. See the blog post citing five counties in New Jersey that are surging.