A lack of new listings in the U.S. is putting a damper on sales, according to a report Friday from Redfin.
Indeed, new listings were down 9% year over year in September, while closed home sales slipped 5% in the same time period, the data showed. Nationally, there are only 1.4 months of supply, down 0.3% year over year.
“The severe lack of inventory is restricting home sales,” Redfin’s chief economist Daryl Fairweather said in the report. “Even though plenty of people bought homes last year, many home buyers waited while the pandemic went from bad to worse and remote-work policies were finalized. The home buyers who are just beginning their search are finding that the well has run dry.”
However, a wave of new projects could help alleviate supply issues, according to Ms Fairweather.
“I am hopeful that as it becomes easier to get building materials, we will finally have a strong year for new construction in 2022,” she said. “That’s what the market needs more than anything.”
At the same time, prices continue to rise, albeit at a slower pace.
The U.S. median home price was $376,800 in September, up 14% compared to the same time the previous year, the report found. That’s the lowest growth rate since December 2020, but September was the 14th consecutive month of price gains over 10%.
Of the 85 metro areas tracked by Redfin, North Port, Florida, registered the highest price increase, 30%, the data showed. Salt Lake City and Austin, Texas, followed, with gains of 28% and 27%, respectively.
Bridgeport, Connecticut, was the only city on the list that saw a dip in prices. There, homes sold for 2.2% less last month, compared to September 2020, according to the report. However, prices were up 32% a year ago, so the prices are likely cooling from the overheated market.