In 2014, 2015 and 2016 we started off the year with enough homes actively listed for sale to last us for right around six months -- or a bit longer.  This balance (a six month supply of housing inventory) is considered by many analysts to be an indicator of a balanced housing market.

Last year (2017) was quite different.  Inventory dropped 26% from 2016 to 2017 and sales rose 17%.  As you would, thus, expect - we started off last year (Jan 2017) in a slightly different spot, as shown above.

Which is, arguably, why we ended up seeing slightly FEWER home sales last year -- sales declined 4% in 2017 from 1309 to 1254.

So, now, starting of 2018 -- are things any better?

No.

There are even FEWER homes for sale now than there were a year ago.  Inventory levels dropped another 32% between January 2017 and January 2018 -- and the current inventory of active listings (280 homes) will / would only last us 2.7 months -- as compared to that balance point of six months.

So, what then will this lead to in 2018?  I am predicting slightly fewer sales than last year -- and likely faster sales -- and at slightly higher prices.

Stay tuned!