Pending sales were only down -17.9% in January (compared to January 2020). The average sales price increased +18.3%, a very healthy climb. However, months supply of inventory is way down again, a whopping -45.5%. This stat changed more than any other. There is only a 1.2 month supply of inventory, which is extremely low, and indicates a strong sellers market.
January started off strong for the housing market, with healthy buyer demand and strong market fundamentals. A robust increase in housing starts in December points to an active year for new construction, but higher material costs, especially lumber, and a limited supply of buildable lots will temper the number of new units.
The Mortgage Bankers Association's January research estimates approximately 2.7 million homeowners with mortgages are currently in forbearance plans. Some of these homes may eventually come to market, but given the strong appreciation in most market segments in recent years, these eventual home sales are likely to be mostly traditional sellers. However, a modest increase in short sales and foreclosures at some point this year would not be surprising.
All data from Triad MLS. Report © 2021 ShowingTime.