January Homes Sold at a Record Pace Despite Low Inventory

Prospective home buyers are facing record low existing supply as well as a lack of new listings in a fast-selling market, particularly in metropolitan areas like Denver and Nashville, where homes are selling in an average of just 35 and 29 days, respectively. The average January home spent a mere 61 days on the market, according to Realtor.com, the fastest pace on record.

Though January is usually one of the slowest months for home sales, the start of 2022 has seen increased competition for a waning supply of homes, putting pressure on builders to meet rising demand as land and materials costs rise and a persisting labor shortage slows new home construction. With the spring market just around the corner, prices are expected to gradually decelerate, though increased buyer traffic will likely sustain a strong pace of new home sales months into 2022, CNBC reports.

Markets in the South saw the biggest yearly decline in the number of days it took to sell a home. Meanwhile, markets like Minneapolis, Richmond and Washington, D.C., saw the time on the market increase slightly.

The days are calculated from the day of listing to the closing date. Closings can take a while, especially given the labor shortage in the market. It is common to hear, anecdotally, that homes are going under contract in less than a week after multiple offers.

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