Housing Expert Examines Forces to Drive Market Demand in the Near Term
Economic headwinds, including the possibility of increasing mortgage rates, a decrease in labor given the immigration crackdown and possible increases in costs of imported items via tariffs, have slowed housing demand nationwide.
John Burns Research & Consulting (JBREC) experts have seen a slowdown. Kevin Cody noticed decreasing sales in Charlotte, with most agents blaming seasonality. In Atlanta, Karen Albright observed that the entry-level and move-up markets have been slower, with builders having to boost incentives.
However, the concerns mentioned above are factors that impact the cost of housing, not demand. James Penner has seen demand for housing continue despite the increased headwinds.
JBREC consultants remain optomistic about finding opportunity amid this housing market, as detailed in a recent JBREC post.
According to the post, Zak Nyberg is seeing increased demand in Florida markets like Melbourne, Port St. Lucie, and Ocala as people move from high-cost to more affordable areas. Jeff Kottmeier has seen the same trend in the Northeast, with prospective buyers heading to Delaware.
Scott Wild has noticed strong demand in Southern California for homes designed for multi-generational living. Combining households with extended family members is the only way many can make their monthly housing costs work.
Oliver Radvin commented that reshoring and industrial growth in the Southeast and Florida have been catalysts for housing demand, creating new jobs in manufacturing, logistics, and tech industries.
