Low Housing Supply Is Leading to Fewer but Faster Home Sales
The spring 2023 housing market is seeing fewer sales despite easing price gains, but according to Redfin, those that are selling are going fast. New listings of homes for sale fell 19% year-over-year during the four weeks ending May 7, but despite that unseasonal monthly decline in total inventory, pending sales increased over the last week, and nearly half of all homes sold are flying off the market within two weeks.
“This spring’s housing market is hot but cold, with scant listings making it less active than usual but fast and competitive at the same time. The good news is that buyers are out there, trying to find a seat in a game of musical chairs. The bad news is there aren’t enough chairs,” said Redfin Deputy Chief Economist Taylor Marr. “A lot of potential home sales are locked up until mortgage rates come down to a level for which current owners would be willing to trade in their 3% rate. The problem is that’s unlikely to happen anytime soon, as although inflation is steadily coming down from last year’s record-high levels, it’s still above target.”