Inventory shortage shows early signs of easing, according to Redfin...
The persistent shortage that has plagued the U.S. housing market for years may be on the cusp of letting up, according to Redfin.
Per data from the national real estate brokerage, April had a 9% year-over-year decline in homes for sale — the smallest annualized decrease since March 2020 and the first single-digit drop in supply for any month since the COVID-19 pandemic started.
Rapidly rising mortgage rates coupled with home-price gains that remain high have helped to soften homebuyer demand, and the shifting tectonics of the market may finally be nudging inventory toward equilibrium.
“When market conditions are changing it becomes more difficult for homebuyers and sellers to see eye-to-eye on pricing,” said Redfin deputy chief economist Taylor Marr. “Many sellers are still seeking sky-high prices for their homes even though rising mortgage rates have limited homebuyer budgets. As a result, buyers are backing off, which is causing home sales to fall and the housing shortage to ease.
“As demand continues to soften, more sellers will likely be forced to drop their prices in order to get offers. The good news is that this should finally bring more balance to the market.” By Arnie Aurellano,
Website content editor, Scotsman Guide.