January started off strong for the housing market, with healthy buyer demand and strong market fundamentals. A robust increase in housing starts in December points to an active year for new construction, but higher material costs, especially lumber, and a limited supply of buildable lots will temper the number of new units.
New listings increased 0.5 percent for residential homes but decreased 0.7 percent for townhouse/condo homes. Pending sales increased 17.6 percent for residential homes and 6.2 percent for townhouse/condo homes. Inventory decreased 41 percent for residential homes and 12.3 percent for townhouse/condo homes.