Number of the Day Shows Depleted Housing Market
Our take on the most relevant or interesting figure in personal finance today
That’s how few homes were left on the U.S. market at year-end—the smallest number since at least 1999—because of the pandemic homebuying frenzy.
Home sales this year reached a fever pitch not seen since before the Great Recession, the National Association of Realtors said Friday, with buyers snapping up homes in a race for more space to live and work during the COVID-19 pandemic. In fact, if sales continued at their December pace, the supply of homes for sale would be exhausted in less than 2 months—the shortest timespan NAR has recorded in the 38 years it's been tracking inventory.
Fueling the frenzy are the amazingly low interest rates available: the average for a 30-year fixed mortgage was 2.77% in the week through Thursday.
“Although mortgage rates are projected to increase, they will continue to hover near record lows at around 3%," Lawrence Yun, NAR’s chief economist, said in a statement.
With the dearth of homes for sale, you might be thinking of putting yours on the market. Make sure to consider these factors first.