If you were expecting the housing market to have significantly slowed by now, you would be mistaken. So far this year home sales have remained red hot, due to a continued low inventory and high demand.
January Home Sales Unseasonably High
January has traditionally been one of the slowest months for sales in housing—usually the market gains steam in early February after Presidents Day weekend, says CNBC. But according to a January report from Realtor.com, the average home spent only 61 days on the market. That’s the fastest pace Realtor.com has recorded since it first started tracking this figure in 2016.
Nashville Home Sales Lead All Markets
Nashville, Tennessee, however, is outpacing the entire nation in home sales with the average residence sitting on the market just 29 days. Major cities that also experienced super-fast sales were Denver: 35 days, Las Vegas: 38 days, and Seattle’s homes remained on the market 39 days. Conditions are ripe for house flippers around the country, but in Nashville—where the competition among eager homebuyers appears to especially stiff—flippers who are poised with a polished product seem to have some of the most favorable odds right now.
Low Home Inventory Continues
One factor that’s contributing to a persisting low home inventory is increasing mortgage rates—the average on the 30-year fixed mortgage is rising toward 4 percent. So if homeowners made a move to sell their existing homes, and jump into the market for a new one, they might lose purchasing power and end up paying more for the same debt. Besides, with housing prices still so high, not everyone’s in a position to buy a new home.
Homebuilders are closely watching these trends. According to CNBC, builders are slowing their sales in order to ensure they can deliver homes on time—especially with shortages on labor, lumber, and other materials.
Paces Funding actively lends throughout the Southeast, including The Carolinas, Georgia, and Florida, as well as in the especially white-hot market of Nashville, Tennessee.