flexiblefullpage - default
Currently Reading

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

Advertisement
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

 

Advertisement
leaderboard2 - default

Related Stories

Market Data + Trends

Exurban Areas Saw Most Growth in New Construction During Q3

NAHB's latest Home Building Geography Index shows exurban areas had the largest increase in market share for both single-family and multifamily construction

Labor + Trade Relations

Labor-Shortage Headwinds Continue for Construction

Jobs report shows construction still faces a wide margin between available positions and the supply of workers to fill them

NAHB

NAHB CEO and President Jim Tobin's 2024 Housing Outlook

From affordability to homebuyer trends, Tobin offer insights into the future of the housing market

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category

Get your sales and marketing teams together to create and deliver a consistent brand message from start to finish

Pundits may not agree on the timing nor the severity of the next economic downturn, but one thing’s certain: these 10 essential tactics will boost your business' efficiency, productivity, and profit

A closer look at what’s propelling the adoption of off-site construction methods in home building

Advertisement
native2 - default
Advertisement
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
Subscribe
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.