The coronavirus pandemic has left a “gaping hole in the U.S. housing inventory” that is triggering property price growth, according to a report from realtor.com.
In the roughly six months between the start of the pandemic in March and mid-September, 2.91 million homes have been put on the market, roughly 390,000 fewer than the same time in 2019, the online real estate portal said. In the week ending Sept. 19, there were 39% fewer homes on the market compared to last year, and any upcoming uptick is unlikely given the typical seasonal slowdown on the horizon.
The lack of supply has been the catalyst for heated market conditions as median listing prices last week grew at a record 11.1% year-over-year—more than double January’s pace—marking the 19th consecutive week of increasing price tags, the report said.