Housing Market Tracker: Inventory drops by 11,000

According to the latest report by the National Association of Realtors (NAR), the housing market inventory dropped by 11,000 in the past month. This decrease in inventory is the largest drop in the last 7 months, and is a continuation of the trend that has been ongoing for over a year.

The housing market has been experiencing a shortage of available homes for sale, as the demand for housing continues to outpace the supply. This shortage has been driving up home prices and causing bidding wars among buyers.

The NAR report shows that the total housing inventory at the end of last month was 1.07 million units, down from 1.08 million units in the previous month. This represents a 2.6 months' supply at the current sales pace, which is down from the 2.7 months' supply reported in the previous month.

The report also revealed that the median existing-home price for all housing types in January was $303,900, up 14.1% from January 2021. This marks the 117th straight month of year-over-year gains in home prices.

Lawrence Yun, NAR's chief economist, commented on the report, saying, "The lack of supply continues to be the main driver of home price growth. Prices could easily rise 10% this year."

The tight housing market has been a challenge for many buyers, especially first-time buyers, who are struggling to find affordable homes. With the ongoing shortage of inventory, it is likely that home prices will continue to rise in the coming months, making it even more challenging for buyers to enter the market.

Overall, the latest report by the NAR highlights the ongoing challenges in the housing market, with the inventory shortage continuing to be a major issue. Buyers and sellers alike will need to be aware of the market conditions and adjust their strategies accordingly in order to achieve their real estate goals.