Read more: Housing Demand Rises, Supply Is Bigger Issue
In December, the month’s supply of existing-homes on the market was 4.4 months; 6 months is considered healthy by most economists’ standards.
At the end of December, 1.85 million homes were listed for sale – an 11 percent drop from November and 0.5 percent drop from year ago levels, according to NAR housing data. A drop in inventory is common from November to December, but Yun notes “what is of interest is the year-over-year decline in inventory because this hints at possible acceleration in home prices in upcoming months.”
Home prices may have already begun “re-accelerating” in some markets, Yun writes. In spring and summer last year, the median price was rising at 4 to 5 percent. In November and December, the prices rose by 6 percent.
Source: “Shrinking Inventory,” National Association of REALTORS® Economists’ Outlook Blog (Jan. 26, 2015)