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US Housing Market Cools: Buyers Gain Leverage as Inventory Rises and Prices Adjust
Over the past 48 hours, the US housing industry has entered a clear cooling phase, marked by rapidly rising inventories and shifting market dynamics. According to updated data, *supply of existing homes reached 4.7 months in June, the highest since July 2016*, while *new home supply is now at 9.8 months*, a peak not seen since 2022 and rivaling the buildup last witnessed before the 2007 housing crisis. This reflects a broad-based increase in housing availability, particularly acute in the Sun Belt and Mountain West, where active listings have returned to or even surpassed pre-pandemic 2019 levels. Notably, such inventory expansion is pressuring both home prices and construction activity, with builders in several markets pulling back on new starts to avoid further oversupply.
Amid these shifts, the typical power balance is changing. *Recent weeks saw the median price of a new home dip below that of an existing home—a rare event in the US market—indicating that builders are aggressively discounting to clear inventory.* Buyers are now gaining more leverage after years of a seller-dominated market, but demand remains subdued due to ongoing affordability concerns and job market fears. The Federal Reserve has begun trimming rates, with the 30-year fixed mortgage stabilizing near a 2025 low at 6.16 percent as of November 12. However, this moderation in borrowing costs has yet to spark a significant revival in buyer interest or refinancing activity.
Regionally, conditions vary: the Midwest and Northeast still face relatively tight supply, though they too are seeing a gradual buildup. Industry leaders are responding with deeper incentives, discounted pricing, and in some cases exploring longer mortgage products such as the 50-year loan to improve affordability, though such terms limit future equity growth. The latest numbers contrast sharply with past reports from the pandemic boom, where constrained supply and surging demand drove rapid price gains.
Overall, the current environment features more choices for buyers, modest price corrections in overheated markets, and a recalibration that is drawing the industry closer to historical norms. Whether recent Fed actions will be enough to reverse the softer trend remains uncertain, keeping the market firmly in a transitional state for now.
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI
Amid these shifts, the typical power balance is changing. *Recent weeks saw the median price of a new home dip below that of an existing home—a rare event in the US market—indicating that builders are aggressively discounting to clear inventory.* Buyers are now gaining more leverage after years of a seller-dominated market, but demand remains subdued due to ongoing affordability concerns and job market fears. The Federal Reserve has begun trimming rates, with the 30-year fixed mortgage stabilizing near a 2025 low at 6.16 percent as of November 12. However, this moderation in borrowing costs has yet to spark a significant revival in buyer interest or refinancing activity.
Regionally, conditions vary: the Midwest and Northeast still face relatively tight supply, though they too are seeing a gradual buildup. Industry leaders are responding with deeper incentives, discounted pricing, and in some cases exploring longer mortgage products such as the 50-year loan to improve affordability, though such terms limit future equity growth. The latest numbers contrast sharply with past reports from the pandemic boom, where constrained supply and surging demand drove rapid price gains.
Overall, the current environment features more choices for buyers, modest price corrections in overheated markets, and a recalibration that is drawing the industry closer to historical norms. Whether recent Fed actions will be enough to reverse the softer trend remains uncertain, keeping the market firmly in a transitional state for now.
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI
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By Inception Point AiOver the past 48 hours, the US housing industry has entered a clear cooling phase, marked by rapidly rising inventories and shifting market dynamics. According to updated data, *supply of existing homes reached 4.7 months in June, the highest since July 2016*, while *new home supply is now at 9.8 months*, a peak not seen since 2022 and rivaling the buildup last witnessed before the 2007 housing crisis. This reflects a broad-based increase in housing availability, particularly acute in the Sun Belt and Mountain West, where active listings have returned to or even surpassed pre-pandemic 2019 levels. Notably, such inventory expansion is pressuring both home prices and construction activity, with builders in several markets pulling back on new starts to avoid further oversupply.
Amid these shifts, the typical power balance is changing. *Recent weeks saw the median price of a new home dip below that of an existing home—a rare event in the US market—indicating that builders are aggressively discounting to clear inventory.* Buyers are now gaining more leverage after years of a seller-dominated market, but demand remains subdued due to ongoing affordability concerns and job market fears. The Federal Reserve has begun trimming rates, with the 30-year fixed mortgage stabilizing near a 2025 low at 6.16 percent as of November 12. However, this moderation in borrowing costs has yet to spark a significant revival in buyer interest or refinancing activity.
Regionally, conditions vary: the Midwest and Northeast still face relatively tight supply, though they too are seeing a gradual buildup. Industry leaders are responding with deeper incentives, discounted pricing, and in some cases exploring longer mortgage products such as the 50-year loan to improve affordability, though such terms limit future equity growth. The latest numbers contrast sharply with past reports from the pandemic boom, where constrained supply and surging demand drove rapid price gains.
Overall, the current environment features more choices for buyers, modest price corrections in overheated markets, and a recalibration that is drawing the industry closer to historical norms. Whether recent Fed actions will be enough to reverse the softer trend remains uncertain, keeping the market firmly in a transitional state for now.
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI
Amid these shifts, the typical power balance is changing. *Recent weeks saw the median price of a new home dip below that of an existing home—a rare event in the US market—indicating that builders are aggressively discounting to clear inventory.* Buyers are now gaining more leverage after years of a seller-dominated market, but demand remains subdued due to ongoing affordability concerns and job market fears. The Federal Reserve has begun trimming rates, with the 30-year fixed mortgage stabilizing near a 2025 low at 6.16 percent as of November 12. However, this moderation in borrowing costs has yet to spark a significant revival in buyer interest or refinancing activity.
Regionally, conditions vary: the Midwest and Northeast still face relatively tight supply, though they too are seeing a gradual buildup. Industry leaders are responding with deeper incentives, discounted pricing, and in some cases exploring longer mortgage products such as the 50-year loan to improve affordability, though such terms limit future equity growth. The latest numbers contrast sharply with past reports from the pandemic boom, where constrained supply and surging demand drove rapid price gains.
Overall, the current environment features more choices for buyers, modest price corrections in overheated markets, and a recalibration that is drawing the industry closer to historical norms. Whether recent Fed actions will be enough to reverse the softer trend remains uncertain, keeping the market firmly in a transitional state for now.
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI