Supply Tightens Even More In The Hottest Markets

According to a recent Redfin survey of homeowners, the uncertainty of finding a replacement home was the key concern for a quarter of the people who said they were thinking of selling.

The number of homes for sale dropped to a historic low last month. Inventory in the 10 most supply-constrained markets (including Seattle, Denver, San Diego, and Boston) decreased by 22 percent in January, marking the 27th straight month of year-over-year declines.

Homes in these hot markets went under contract in just 31 days, five days faster than last year and 35 days faster than in 2012.

The decline in total inventory is due to the high level of home sales in these markets over the past 3 years. The recent decline in new listings means homeowners have been slow to list their homes for sale despite strong demand from buyers so far this year.

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