Housing demand will continue to decline until 2024: NYC real estate developer
The Peebles Corporation founder and CEO Don Peebles provides expert analysis of the housing market and how COVID-19 has forever impacted the commercial real estate market on ‘Mornings with Maria.’
The national inventory of homes for sale grew at a record pace for a third consecutive month in July, the latest sign that rising borrowing costs are starting to cool off the housing market.
The number of active listings in the U.S. soared 30.7% from the previous year, according to the latest Monthly Housing Trends report published on Tuesday by Realtor.com. Although potential buyers had more housing options in July, competition remained largely in sellers' favor, with listing prices hovering near all-time highs and homes selling more quickly than before the COVID-19 pandemic.
"The U.S. housing market continues to move toward more evenly balanced supply and demand compared to the 2021 frenzy," said Danielle Hale, the chief economist at Realtor.com. "Our July data shows elevated mortgage rates left many buyers tightening their budgets and sellers responding with price reductions, while home shoppers who kept searching saw more available options."
The interest rate-sensitive housing market has started to cool noticeably in recent months as the Federal Reserve moves to tighten policy at the fastest pace in three decades in order to cool consumer demand and bring scorching-hot inflation under control. Policymakers approved two back-to-back 75 basis point rate hikes in June and July and have indicated that another increase of that magnitude is possible in September, hinging on upcoming economic data.
SOARING MORTGAGE RATES DISCOURAGE HOME BUYING EVEN AS RENTAL COSTS JUMP