flexiblefullpage - default
Currently Reading

Buyers Are Plotting Their Return to the For-Sale Market, but This Hurdle Could Keep Them at Bay

billboard - default
Market Data + Trends

Buyers Are Plotting Their Return to the For-Sale Market, but This Hurdle Could Keep Them at Bay

The housing market may be cooling, but experts say a shortage of new for-sale homes could stir up competition and sustain high prices in spring

February 14, 2023
Neighborhood houses aerial view
Image: Stock.adobe.com

As mortgage rates and home prices dipped from record highs at the start of 2023, prospective homebuyers made a slow but promising return to the for-sale market. Mortgage applications surged 45.6% during the week ending Feb. 3 from four weeks prior, but according to Realtor.com, measures of homebuyer demand remain low compared with highs from one year ago. 

Though a spring thaw has builders and buyers optimistic for a more active market in 2023, experts warn that a lack of for-sale inventory could keep prices high even in the midst of a widening market correction.

Much of the problem lies with homeowners who would typically trade up into a larger home or downsize into a smaller one. Right now, those who can’t buy in all cash generally don’t want to sell unless they have to do so. Most would prefer to hold on tight to the ultralow rates they locked in during the COVID-19 pandemic instead of having to get a new mortgage with a higher rate.

“Their desire to sell and lose that mortgage rate they’re likely to never see again is diminished,” says Matthew Gardner. He is the chief economist for the Seattle-based brokerage Windermere Real Estate, which operates in 10 Western states. So buyers “faced with limited inventory are going to find it more competitive than they would like.”

Read more


Related Stories

Market Data + Trends

Homebuyer Desperation Is Leading to a Rise in Real Estate Fraud

Real estate scammers are targeting budget-conscious buyers and wreaking havoc on the for-sale market, and experts say the situation could get worse as market dynamics continue to shift

Market Data + Trends

National Home Prices Fell for the Seventh Straight Month in January

U.S. home prices are cooling as interest rates rise, and these metros are seeing the biggest price corrections


US Housing Affordability Is Worse Now Than It Was in 2008

Measurements of housing affordability were worse in December 2022 than at any point leading up to the housing bubble in 2008, but experts say conditions will improve by the end of the year

boombox1 -
native1 - default
halfpage2 -

More in Category

native2 - default
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.