Over the past two years, through the pandemic, the number of active listings continued on a dramatic decline. In January 2020, there were approximately 1,033,000 active listings nationwide. This dwindled to around 571,500 listings a year later, and, by January 2022, the active listings were down to just under 409,000.Footnote2
Over this two-year period, that amounted to a whopping 60.4% decline in active inventory!Footnote3 Lawrence Yun, the National Association of REALTORS® (NAR) chief economist, put it starkly, "The inventory of homes on the market remains woefully depleted, and in fact is currently at an all-time low."Footnote4
With millions of millennials entering their home buying prime each year, it's no wonder that the added competition has helped to drive up the national median active listing price to $375,000 in January. This is up 10.3% and 25.0% year-over-year (YoY) compared to Januaries 2021 and 2020, respectively.Footnote3
How is your state faring?
The map above illustrates each state's YoY rate of change in active listings, from January 2021 to January 2022. Unfortunately, not a single state escaped a decline in its percentage of listings, while the nation as a whole experienced a 28.45% YoY reduction in inventory.Footnote1
At the opposite extreme, Connecticut's active inventory declined by 58.3% YoY. Following in this negative ranking were Vermont (-50.7%), Florida (-49.3%), Hawaii (-48.7%) and South Carolina (-42.4%). It's also worth noting the YoY active listing changes for the remaining most populous states: California (-27.7%), Texas (-23.2%) and New York (-17.1%).Footnote1