Closing Complex Loans Faster With a Digitized Client Workflow

Join us for a discussion on changes in market demographics, suppliers and how focusing on customer experience and a few simple steps during the mortgage loan process can close deals 3x faster.

engage.marketing event: All eyes on purchase

To help power your business forward, we’re bringing together the smartest minds in purchase mortgage marketing to share the insights, tactics and strategies that set leaders apart.

Home appraisal’s ugly history and uncertain future

This is Part I of a deep dive into the home appraisal industry. Today we explore the origins of the appraisal industry and its current lack of diversity.

The digital journey starts at acquisition

Download this white paper to learn how to build a tech-enabled acquisition strategy that will directly contribute to a lender’s ability to maximize profitability and remain competitive.

Real Estate

U.S. inventory of homes for sale reaches record low

Supply shortage is choking the housing market and driving up prices

The nation’s inventory of homes for sale tumbled 14% in January, falling to the lowest level since at least 2012, according to a realtor.com report.

The inventory of entry-level homes saw the steepest drop in the series that goes back to 2012, the report said. The supply of properties priced under $200,000 fell 19%, while homes priced $200,000 to $750,000 declined 12%.

A supply shortage is choking the housing market, as evidenced by December’s 4.9% drop in pending home sales, the largest in almost a decade, according to the National Association of Realtors.

Mortgage rates at three-month lows and a strong jobs market can’t help buyers if there aren’t enough homes to purchase. The increase in competition is worsening their plight by driving up prices, said Danielle Hale, realtor.com’s chief economist.

“This is a challenging sign for the large numbers of Millennial and Gen Z buyers coming into the housing market this homebuying season as it implies the potential for rising prices and fast-selling homes – a competitive market,” Hale said.

The metro areas with the largest annualized inventory declines were San Jose, California, down 37.3%; Phoenix, Arizona, down 35.4%; and San Diego, California, with a decline of 34%.

Only two of the nation’s 50 largest metros saw inventory increases: Minneapolis, up 9.4%; and San Antonio, Texas, up 8.4%.

While the national median listing price increased 3.4% in January from a year earlier, the gain was more than 10% in 18 metros, the report said.

The median list price in Philadelphia jumped 16%, the report said. In Rochester, New York, the gain was 15% and in Phoenix it was 14.5%. Memphis, Tennessee, it was 13.7%, and in Indianapolis, Indiana, it was 12.9%.

The homebuilding industry, decimated during the housing crash, still hasn’t returned to a normal level of production that would meet the demand created by increasing household formation.

It looks like more builders will be getting off the sidelines this year. Single-family housing starts probably will rise to 975,000 this year, the highest level since 2007, according to a forecast from Fannie Mae. That would be a 10% gain from 2019.

Most Popular Articles

Fannie Mae, and the housing market’s inflation problem

Another month of steadily increasing home prices and insatiable demand led Fannie Mae’s Economic and Strategic Research Group to alter many of its 2021 predictions – in particular, its outlook on the symbiotic relationship between the housing market and inflation measures.

Jun 16, 2021 By

Latest Articles

Doug Duncan and the housing market’s supply conundrum

The housing market has suffered due to high material prices, spend-anything buyers & a lack of supply. A return to normalcy will require big changes. HW+ Premium Content

Jun 18, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please