Did Your Dream Home Just Come on the Market?
The number of newly listed residences is beginning to climb for the first time in a long time. According to realtor.com's most recent monthly report, the number of existing houses entering the market has climbed for the second month in a row (this comes after six months of declines). The graph below shows the monthly new listings since January of last year. Green bars reflect increases for the first time since June.
However, demand for homes continues to outstrip supply.
Though the increase in properties coming to the market is wonderful news for prospective homebuyers, the number of purchasers is still surpassing the number of homes available for sale. In their most recent research, realtor.com explains:
"More new sellers entered the market in the last two weeks of the month than at the same time last year." . . . However, with 5.8 million new houses missing from the market and millions of millennials at first-time buying ages, housing supply faces a long road to catching up with demand.”
Buyer demand was higher this January than any previous January in the last five years, according to the latest ShowingTime Showing Index, which tracks the average number of appointments received on active listings during the month (see graph below):
This prompted ShowingTime to say:
“The latest data from ShowingTime . . . shows a surge in home buyer demand in January. . . . This enormous activity occurred in a month when buyer activity typically slows and followed a historic 2021, where buyer demand across the country was extraordinarily strong.”
So, what does this imply for you?
Basically, as soon as a home hits the market, it is promptly snapped up by eager bidders. So, despite the fact that the number of newly listed houses is increasing, the number of active listings is dropping every month as purchasers snap up homes nearly as soon as they become available. This means that listings come on and off the market so quickly that they aren't counted in the active listing counts the next month. Using data from realtor.com, here's a graph showing the amount of active listings each month since January:
Despite the fact that the number of newly listed houses has climbed over the last two months, the number of active listings has declined for each of the last five months.
Let's connect so you can remain up to speed on what's going on in your neighborhood, whether you're wanting to upgrade to a property that better suits your lifestyle or looking to buy your first home. Also, be ready to relocate as soon as a home that meets your requirements becomes available. Your dream home could be one of the newly available listings, but if you don't act quickly, it could be gone tomorrow.