Home buyers in 2021 saw a slimmer selection of homes to choose from than they have in years. Inventory levels, which were already chronically low, dropped even further last year, according new data. Zillow’s December 2021 Market Report shows that inventory plummeted in December by 11.1 percent bringing 2021 to a close with nearly 20 percent fewer homes on the market than in the previous year.
The record low of 923,000 homes for sale in the U.S. as of last month is 40.5 percent fewer than December 2019 and was experienced in most major metropolitan markets nationwide. In fact, the Zillow report notes that inventory levels were down in 47 out of the 48 largest metros in the U.S.
Taking this into consideration, it makes sense that December was also the first time since July that home price appreciation increased on a month-over-month basis.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.25 percent.
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