The housing market is experiencing significant shifts, with housing inventory up nearly 40% compared to last year. In Phoenix, inventory levels have surpassed those of 2017, while Orlando has seen an 82% increase in active listings over the past year, reaching 10,759 homes. This surge in inventory is contributing to a decline in home prices. Despite the increase in available homes, demand for homeownership has stalled as buyers await lower mortgage rates. Existing home sales are down, although new home sales have risen with more inventory entering the market. The National Association of Realtors (NAR) has noted that the market is impacted by the ‘lock-in effect,’ with existing homeowners holding onto historically low rates. NAR’s Chief Economist Lawrence Yun has projected that demand will rebound next year, despite current challenges. Homebuyer demand is now below the lows of 2008-2010. There is about 15% more inventory than last year, and even last month, the typical sold home received 2.8 offers.
Tags: Housing, Mortgage, Finance, USA
