From Mansion Global:
Booming demand for U.S. homes drove the number of properties for sale to new lows in December, according to a report on Thursday.
Nationwide, the number of homes for sale fell below 700,000 in December, the lowest in recent history, according to realtor.com. A flurry of demand that has vastly outpaced new listings to the market has steadily eroded U.S. housing inventory since the summer and caused home prices to surge.
A housing shortage has been building for years, said Danielle Hale, realtor.com’s chief economist—especially at more affordable price points.
But in December the combination of the holiday inventory slowdown and the pandemic buying trend caused it to dip to its lowest level in history,” Ms. Hale said in the report. She forecasted U.S. housing supply would remain low for at least a few more months as a winter surge in Covid-19 cases discourages sellers from entering the market.
Buyers are facing an acute shortage of homes to choose from in cities like Austin, Texas; Denver; and Providence, Rhode Island. These and other areas like Dallas and Charlotte, North Carolina, had less than half the number of homes for sale as they did in December 2019.