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.
- New Listings decreased 18.8 percent for Single Family homes and 11.0 percent for Townhouse/Condo homes.
- Pending Sales increased 32.4 percent for Single Family homes and 34.8 percent for Townhouse/Condo homes.
- Inventory decreased 49.2 percent for Single Family homes and 15.9 percent for Townhouse/Condo homes.
- Median Sales Price increased 12.7 percent to $417,000 for Single Family homes and 22.5 percent to $210,000 for Townhouse/Condo homes.
- Median Time to Contract decreased 50.0 percent for Single Family homes and 22.4 percent for Townhouse/Condo homes.
- Months Supply of Inventory decreased 51.3 percent for Single Family homes and 15.8 percent for Townhouse/Condo homes.
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.