December 2017 Was the 35th Consecutive Month of Falling For-Sale Housing Inventory

Zillow's December 2017 Housing Market report concludes that there is 'no end in sight' to the inventory crisis in the U.S. For-sale inventory is down 10 percent since December 2016, andfalling on an annual basis for the past 35 months.

The report by Zillow senior economist Aaron Terrazas says that 2018 will likely see a continuation of tightening housing inventory, and as a result, escalating homebuyer competition, and home values. National home values rose 6.5 percent in 2017 to a median home value of $206,300, while home values in San Jose, Las Vegas, and Seattle rose the most. Median rent in the U.S. rose at the fastest pace of appreciation since June 2016, up 2.6 percent from December 2016. West Coast rental markets have appreciated the fastest.

Nationwide, inventory of homes in the bottom third of home values – the kinds of modest, more entry-level homes typically sought by first-time buyers and young families – was down 17.7 percent in December compared to a year ago. Inventory of top-third homes more likely to be purchased by more established move-up buyers was down just 4.9 percent over the same period. More than half of homes available for sale on Zillow in December were in the top-third of all homes, compared to just 22.1 percent in the bottom-third.

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