Housing Inventory Hit a Record Low in December -- Will Things Pick Up in 2022?
It's hardly a secret that the residential real estate market has been starved for listings since late 2020. Not only are everyday homebuyers struggling to get their offers accepted, but even seasoned real estate investors are feeling the strain.
It's common for real estate investors to compete with everyday buyers for homes that can be used as income properties or short-term vacation rentals. But right now, inventory is sitting at a record low. The National Association of Realtors reports that as of the end of December, there were only 910,000 unsold existing homes on the U.S. housing market. That's the equivalent of a 1.8-month supply of houses. It also represents a 14.2% decline from one year prior.
For context, it takes a 4- to 6-month supply of homes to allow for a more equalized housing market -- one where neither buyers or sellers have the advantage. Today's market, however, benefits sellers immensely, which explains why homes prices are up across the board, making things harder for regular buyers and investors alike.
Source Fool.com
