Good luck buying an affordable home in these US cities

NAR report found that housing supply dropped again in December

Jan.January 11, 2020 02:00 PM
Seattle, Washington (Credit: iStock)

Seattle, Washington (Credit: iStock)

In the market for an affordable home or a house on the West Coast? Good luck, there aren’t many out there.
There were fewer homes for sale across the country in December than there has been in three years, according to a National Association of Realtors count cited by Mansion Global. Overall supply across the U.S. fell 12 percent year-over-year last month and drops were recorded in every price segment.

The report found the dearth in listings was more significant at lower price points, as low mortgage rates motivate buyers to snap up more affordable homes. Since December, mortgage rates have fell below 3.70 percent.
NAR’s lowest price segment — under $200,000 — saw an 18.1 percent drop in listings year-over-year, while homes between $200,000 and $750,000 dropped 10.2 percent. Listings over $1 million fell 4.4 percent.

Inventory fell in 47 of the nation’s 50 largest metro areas and the drop was most significant in tech-oriented West Coast markets — the San Jose, Seattle, and San Francisco metro areas each saw 30 percent declines in listings. Median prices rose 7.5 percent, 5.8 percent, and 5.7 percent, respectively.

The three U.S. metros with more homes on the market were San Antonio, Minneapolis, and Las Vegas. All three metros saw median listing prices drop year-over-year.

The U.S. housing market is likely to continue to tighten, as the level of new listings also fell 11.2 percent year-over-year. [Mansion Global] – Dennis Lynch 

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