As housing demand continues outpacing supply, tight inventory is plaguing potential buyers and putting upward pressure on home prices. But supply in some housing markets worse off than others.
Home sales declined 7.9% year-over-year in January, and the number of homes for sale fell 14.4%, the greatest year-over-year decline in 28 months, according to Redfin. About 19.2% of homes sold above the asking price, up from 18.7% from the previous year.
All the while, home values rose 7.8%, with the median sales price growing to $280,500 last month, which could all point to an even tougher spring buying season
than last year's. Mortgage rates are also higher, but limited supply remains the biggest strain on the housing market.
"Many buyers are concerned about interest rates, but the biggest driver of this market is inventory, not rates," Joe Krupsaw, a Redfin agent in Washington, D.C., said in a press release. "None of my clients have said they'll change their plans to buy if rates increase. I think when rates hit 4.5% we'll see some buyers reassess their budgets and what they can afford, but they won't stop looking for a home."
Where inventory is concerned, Worcester, Mass., and Rochester, N.Y., were tied with the greatest declines in new listings year-over-year in January, falling 16.8% in both cities. Also on the list of greatest annual drops in new listings is Memphis, Tenn., where they fell 15.3% to 957.
From Worcester to Memphis, here's a look at 12 places where housing supply is dwindling.
The data was derived from Redfin's Real-Time Housing Market Tracker, a monthly analysis of home prices, competition, sales volumes and inventory levels across the markets that Redfin serves nationwide.