Home Buyers Have It Tough as Nation Faces Unprecedented Housing Shortage!

Home Buyers Have It Tough as Nation Faces Unprecedented Housing Shortage

By Clare Trapasso | Feb 4, 2021.

It's no news to house hunters that the pickings are slim in today's real estate market. While that has been true for several years, the pandemic has made the situation worse as virus-wary home sellers have pulled their properties off the market, resulting in sky-high prices and out-of-control bidding wars for the remaining stock.

Overall housing inventory plummeted 43% in January compared with the same month last year, according to a recent realtor.com® report. New listings were down 23% year over year.

Median home prices soared 15.4% annually, to $346,000 in January, as a result of the shortage. That means buyers should gear up for battle—it's going to be a very competitive spring home-buying season.

"It's tough for buyers, particularly first-time buyers dealing with limited options and fast-rising prices," says realtor.com® Chief Economist Danielle Hale. "We're looking at an all-time low number of homes for sale and record numbers of buyers trying to get into the market." By Clare Trapasso | Feb 4,