Fewer Homes on the Market causing Buyer Frenzy

I recently attended a open house for a new listing in San Marino at 2185 Sherwood to preview for clients (Featured in home of the week). It just came on the market and while I was at the open house, there were about 40 people in and out looking at the lovely home. I know the housing inventory was low but I was just astonished on how many other people there were just in the short time I was. When you have a home that is priced well and under 1 Million dollars, it tends to draw the most interest. Just over a week ago there were only 8 homes on the market in San Marino.

Housing inventory dropped 8.5% in December to reach 1.82 million homes available for sale. That represents a supply of just under 4½ months. Most economists consider six or seven months a healthy supply. Unsold inventory is now at its lowest level since January 2001.

Tight inventory and steep competition for homes drove the median home price up 11.5% from the same month a year earlier to hit $180,800.