Housing inventory fell 4% last week from the week before, and while that decline can be partially attributed to seasonality, a slight uptick in purchase applications at the end of the year is also a driving force in surging buyer demand and waning supply. From Dec. 30, 2022 to Jan. 7, 2023, weekly housing inventory fell from 490,809 to 471,349, while total active listings are on the cusp of falling below 1 million, according to Housing Wire.
Though the U.S. housing market traditionally has between 2 million and 2.5 million homes for sale, on average, total inventory is currently at a low 1.14 million for-sale homes, leaving spring buyers with slim pickings despite falling prices.
As noted above, the last few weeks have seen a noticeable 4% decline in inventory. Most of that decline can be attributed to the yearly seasonal decrease. If purchase application data started to improve toward the end of the year, and it looks out 30-90 days, then some of the inventory clearing can be attributed to better demand, not just the seasonal decline in inventory.
- Weekly inventory change: (Dec. 30, 2022-Jan. 6, 2023): Fell from 490,809 to 471,349
- Same week last year: (Dec. 31, 2021-Jan. 7, 2022): Fell from 293,477 to 292,021
Advertisement
Related Stories
New-Home Sales
New-Home Sales Steady During February
A small increase in mortgage rates during February led to a flat reading for new-home sales
Market Data + Trends
Hottest Markets for Rental Activity in February
Looking at February's rental activity, the West continued to be the most desirable region for apartment hunters for the second month in a row, with the South close behind
Market Data + Trends
Looking Ahead: Second-Quarter Housing Market Trends
Industry pros offer insights about what real estate trends we can expect to see during the next three months