Despite a challenging housing market marked by high prices and a shortage of supply, an uptick in new construction offers a glimmer of hope for U.S. homebuyers. Home construction rose 1.8% during the last week of September, defying the usual seasonal decline, according to Insider.
This increase suggests buyers are reacting to record-high mortgage rates, which recently exceeded 7%. Additionally, more homes are being listed with price cuts, a sign that prices may be trending downward into the fall homebuying season.
"It's still tough to win a home for under asking price, but sellers have come to terms with the fact that that 7%-plus mortgage rates are giving buyers cold feet and that homes aren't as likely to attract multiple offers," Redfin said.
In the existing home market, sellers are growing open to negotiating about the asking price, or offering concessions, like funding home repairs or a mortgage-rate buydown.
Meanwhile, builders are also adapting to market conditions, offering smaller properties or rate buydowns as well.
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