34
WINTER STORMS
CONTRIBUTE
TO DEARTH
OF HOUSING
INVENTORY
February's severe freeze that swept much
of the country prevented many would-be
listings from hitting the market, widening the
housing-inventory dearth. Realtor.com reports
the situation has pushed new listings to a record
low, further behind pre-pandemic levels, from
which it will be difficult to come back. At this
rate, the researchers say, buyers will be in for
a much more competitive homebuying season
than last year.
"Last month's record cold and snowstorms
likely caused sellers to hit pause, even
if only temporarily," Realtor.com Chief
Economist Danielle Hale said. "However,
in today's inventory-starved market, any
setback is significant. Unless we see some big
improvements in the new listings trends over
the coming months, buyers can expect stiff
competition. And unlike last spring, buyers
may also face affordability challenges as home
prices and mortgage rates increase. Market
dynamics continue to favor sellers."
Hale and Sr. Economic Research Analyst
Sabrina Speianu say that, nationally, the
inventory of homes for sale in February
decreased by 48.6% over the past year, a higher
rate of decline compared to the 42.6% drop in
January.
at is some 496,000 fewer homes for sale
compared to February of last year, they noted.
Newly listed homes declined further, by
24.5% year over year. In the third week of
February—during the severe weather—new
listings dropped by 35.2% year over year.
ey then reportedly recovered to 26.9% in
February's final week as conditions eased.
"Approximately 207,000 fewer homes
were newly listed for sale during the first two
months of 2021, compared with the average
for those two months over the last four years,"
the authors noted. "New listings would need to
increase by 25% year over year in March and
April to bring the year-to-date figure back to
April 2020's levels."
Listed homes aren't remaining on the
market very long—the average home spent 70
days on the market this February, which is 11
days less than last year.
