Redfin economist says ‘severe inventory shortfall’ is hurting sales
U.S. home sales and new listings both took a hit in September, and inventory squeezes are pushing up prices, according to the latest data.
“Severe inventory shortfalls are limiting home sales,” Redfin chief economist Daryl Fairweather said in a statement. “Even though many people bought homes last year, many homebuyers waited while the pandemic went from bad to worse and remote-working policies were finalised.”
Fairweather continued, “Home buyers who are just beginning their search are finding that the well has run dry.” “But I expect that as building materials become easier to obtain, we will have a strong year for new construction in 2022. The market needs that more than anything.”
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In one of the 85 largest metro areas tracked by Redfin, average selling prices were up last month. Nationwide, the year-over-year average price for a home rose 14% to $376,800, the real estate firm reported.
Across the country, a study of 66 metro areas showed declines in home sales in September, and the cities that saw the biggest declines were New Orleans which was down 42%, followed by Bridgeport, Conn., with a drop of 24%. , and Salt Lake City where home sales declined 23 percent.
Areas that saw the biggest increase in sales from a year ago were New York City up 25%, Honolulu with sales up 24% and San Jose, CA up 15%.
Meanwhile, supply constraints have continued to drive competition among buyers, with the number of homes selling above list price reaching 48% in September. This percentage is lower than June’s record high of 56%, but still 14 percent higher than in September of 2020.