LOUISVILLE, Ky. (WAVE/NBC) - If you are on the hunt for a new home and you see a “for sale” sign, you better act fast. It’s a seller’s market in the real estate industry and any would-be home buyer out there needs to act fast.
According to NBC News, homes are selling in half the time they did a year ago. Meanwhile, existing home sales continue to increase and are up 24 percent from one year ago. As of the end of January, housing inventory was 26 percent lower than last year’s number.
The lack of available inventory continues to push prices higher, leading to the median sales price increasing 14 percent over a year ago, according to NBC News. The lack of supply in the face of strong demand continues to push prices higher and higher.
Sales of newly-built homes are benefiting from the severe shortage of existing homes. Sales of new homes up 15 percent, year-over-year, according to NBC News. However, builders are having trouble keeping up with demand due to a recent spike in lumber prices.
Lumber prices hit a record high in mid-February, adding thousands of dollars to the cost of a new home and causing some builders to abruptly halt projects. Builders are also seeing a shortage in skilled labor.