Housing Market Is Rebounding
The pent-up demand for homebuyers has caused many to turn to buying newer homes. Builders, on the other hand, are taking the opportunity to offload their inventory as sales of new homes surge 12% in May. Which is helping the housing market in the long run.
According to Realtor, despite the headline figure revealing that home sales are down, the housing market isn’t in a crisis—it’s actually in recovery mode.
Considerable pent-up demand for homes from buyers who have accepted the new normal of high-interest rates, combined with homeowners’ reluctance to sell their homes and give up their rare pandemic-era ultra-low mortgage rate has led to an imbalance in demand and supply.
And unless mortgage rates rise significantly to scare off eager home buyers, or fall low enough to incentivize existing homeowners to sell, the housing market is likely to see this weird imbalance persist.
Builders, on the other hand, are taking the opportunity to offload their inventory as sales of new homes surge 12% in May.
What the realtors said: “Despite sluggish pending contract signings, the housing market is resilient with approximately three offers for each listing,” NAR Chief Economist Lawrence Yun said.
“The lack of housing inventory continues to prevent housing demand from being fully realized,” he added.
