High prices amid tight inventory is the clear picture for the spring housing market in 2018
High prices amid tight inventory is the clear picture for the spring housing market in 2018.
Supply issues mean that the median national listing price was up 8% year-over-year in March to $285,000, beating the 2017 high of $275,000 according to data from Realtor.com.
Meanwhile, total listings were down 8% and days on market fell 8% to 63 days.
"Our latest inventory data tells us buyers are out in full force this spring. Never in history have there been more eyes on fewer homes than today,” said Javier Vivas, director of economic research for realtor.com. “At the end of March, we observed price gains that put us on pace for half of the homes listed this summer to be above $300,000. Buyers are not just paying more for the same home; the mix of homes in the market is rapidly changing.”
The pockets of improved listings are led by homes above $350K but those in the $200,000-300,000 range are constrained and the most affordable homes (below $200K) are virtually non-existent.
It means that competition will remain high, especially for first-time buyers seeking homes at the lower end of the market.
Realtor.com calculates that if the current trend continues, 1 in 12 homes listed will be in the $1 million plus range, while just 1 in 3 will be blow $200,000.
