Housing Market 2023: Nobody is Selling and Everyone is Buying
The American housing market in 2023 has shifted dramatically, with homeowners reluctant to sell and potential buyers lining up to purchase.
The result has been a surge in the market for newly constructed homes, which have filled the void left by the reduced inventory of existing properties.
Last year saw a spike in mortgage rates that dissuaded potential sellers from relinquishing their current homes with their low mortgage rates.
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Investing / Real Estate
Housing Market 2023: Nobody is Selling and Everyone is Buying
The American housing market in 2023 has shifted dramatically, with homeowners reluctant to sell and potential buyers lining up to purchase.
The result has been a surge in the market for newly constructed homes, which have filled the void left by the reduced inventory of existing properties.
Last year saw a spike in mortgage rates that dissuaded potential sellers from relinquishing their current homes with their low mortgage rates.
According to data from the National Association of Realtors, only 1.08 million existing homes were listed for sale or under contract by the end of May, marking a historic low for this time of year since 1999.
This homeowner reticence has paved the way for the thriving new construction market, which has rapidly become the only viable option for many aspiring homebuyers.
The ratio of newly constructed homes to existing homes on the market has grown significantly, accounting for nearly one-third of all single-family homes for sale nationwide in May, up from the usual rate of 10-20%.
This shift has brought life back to the home-building industry, which had slowed due to rising interest rates and financial uncertainty.
According to the National Association of Home Builders, confidence has increased consistently over the past seven months, hitting its highest level since June 2022.
Source: gobankingrates.com
Marina Zaric Real Estate Broker
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