Sign up to save your podcasts
Or
Share US Housing Market Cools: Navigating Shifting Dynamics in 2023
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
US Housing Market Cools: Navigating Shifting Dynamics in 2023
In the past 48 hours, the US housing industry has shown a marked acceleration in price cuts and inventory growth, according to the latest market data. Zillow reports that record numbers of sellers are reducing asking prices, a trend not seen since before the pandemic. Inventory levels are rising rapidly, with single family homes for sale up about 20 percent year over year, though they still remain below historic averages and the number of homes for sale is nearly 20 to 30 percent below prior troughs.
Nationally, the average home value stands at 367,711 dollars, reflecting a moderate increase of 1.4 percent over the past year. While this suggests some market resilience, growth is slowing compared to earlier in the decade. New homes for sale have reached their highest numbers since 2007, with 481,000 units, and speculative homes stand at 385,000, both roughly 40 to 50 percent above long-term averages. This increased supply is beginning to shift the balance of power back toward buyers, but not enough to create a fully balanced market yet.
Mortgage rates remain elevated and continue to deter many potential buyers, particularly first-time entrants. Consumer behavior has shifted, with would-be buyers increasingly opting to rent or delay purchases, hoping that rates and prices will improve. Despite these headwinds, leading builders have responded by offering more aggressive incentives, including rate buydowns and design upgrades, to retain demand and counteract affordability challenges.
No significant new regulatory changes have emerged in the past week, but ongoing discussions about housing affordability and zoning reform signal possible shifts ahead. The latest reporting shows that construction slows as builders weigh higher financing costs against softening demand.
Compared to last year, the market is less frenzied, with price growth and bidding wars cooling, and more inventory coming to market. While the current environment remains challenging for buyers and sellers alike, the industry is showing early signs of stabilization as it adapts to elevated rates, increased supply, and evolving consumer preferences. Market watchers are closely monitoring whether these adjustments will lead to a more favorable outlook in the second half of 2025.
This content was created in partnership and with the help of Artificial Intelligence AI
Nationally, the average home value stands at 367,711 dollars, reflecting a moderate increase of 1.4 percent over the past year. While this suggests some market resilience, growth is slowing compared to earlier in the decade. New homes for sale have reached their highest numbers since 2007, with 481,000 units, and speculative homes stand at 385,000, both roughly 40 to 50 percent above long-term averages. This increased supply is beginning to shift the balance of power back toward buyers, but not enough to create a fully balanced market yet.
Mortgage rates remain elevated and continue to deter many potential buyers, particularly first-time entrants. Consumer behavior has shifted, with would-be buyers increasingly opting to rent or delay purchases, hoping that rates and prices will improve. Despite these headwinds, leading builders have responded by offering more aggressive incentives, including rate buydowns and design upgrades, to retain demand and counteract affordability challenges.
No significant new regulatory changes have emerged in the past week, but ongoing discussions about housing affordability and zoning reform signal possible shifts ahead. The latest reporting shows that construction slows as builders weigh higher financing costs against softening demand.
Compared to last year, the market is less frenzied, with price growth and bidding wars cooling, and more inventory coming to market. While the current environment remains challenging for buyers and sellers alike, the industry is showing early signs of stabilization as it adapts to elevated rates, increased supply, and evolving consumer preferences. Market watchers are closely monitoring whether these adjustments will lead to a more favorable outlook in the second half of 2025.
This content was created in partnership and with the help of Artificial Intelligence AI
View all episodes
By Inception Point AiIn the past 48 hours, the US housing industry has shown a marked acceleration in price cuts and inventory growth, according to the latest market data. Zillow reports that record numbers of sellers are reducing asking prices, a trend not seen since before the pandemic. Inventory levels are rising rapidly, with single family homes for sale up about 20 percent year over year, though they still remain below historic averages and the number of homes for sale is nearly 20 to 30 percent below prior troughs.
Nationally, the average home value stands at 367,711 dollars, reflecting a moderate increase of 1.4 percent over the past year. While this suggests some market resilience, growth is slowing compared to earlier in the decade. New homes for sale have reached their highest numbers since 2007, with 481,000 units, and speculative homes stand at 385,000, both roughly 40 to 50 percent above long-term averages. This increased supply is beginning to shift the balance of power back toward buyers, but not enough to create a fully balanced market yet.
Mortgage rates remain elevated and continue to deter many potential buyers, particularly first-time entrants. Consumer behavior has shifted, with would-be buyers increasingly opting to rent or delay purchases, hoping that rates and prices will improve. Despite these headwinds, leading builders have responded by offering more aggressive incentives, including rate buydowns and design upgrades, to retain demand and counteract affordability challenges.
No significant new regulatory changes have emerged in the past week, but ongoing discussions about housing affordability and zoning reform signal possible shifts ahead. The latest reporting shows that construction slows as builders weigh higher financing costs against softening demand.
Compared to last year, the market is less frenzied, with price growth and bidding wars cooling, and more inventory coming to market. While the current environment remains challenging for buyers and sellers alike, the industry is showing early signs of stabilization as it adapts to elevated rates, increased supply, and evolving consumer preferences. Market watchers are closely monitoring whether these adjustments will lead to a more favorable outlook in the second half of 2025.
This content was created in partnership and with the help of Artificial Intelligence AI
Nationally, the average home value stands at 367,711 dollars, reflecting a moderate increase of 1.4 percent over the past year. While this suggests some market resilience, growth is slowing compared to earlier in the decade. New homes for sale have reached their highest numbers since 2007, with 481,000 units, and speculative homes stand at 385,000, both roughly 40 to 50 percent above long-term averages. This increased supply is beginning to shift the balance of power back toward buyers, but not enough to create a fully balanced market yet.
Mortgage rates remain elevated and continue to deter many potential buyers, particularly first-time entrants. Consumer behavior has shifted, with would-be buyers increasingly opting to rent or delay purchases, hoping that rates and prices will improve. Despite these headwinds, leading builders have responded by offering more aggressive incentives, including rate buydowns and design upgrades, to retain demand and counteract affordability challenges.
No significant new regulatory changes have emerged in the past week, but ongoing discussions about housing affordability and zoning reform signal possible shifts ahead. The latest reporting shows that construction slows as builders weigh higher financing costs against softening demand.
Compared to last year, the market is less frenzied, with price growth and bidding wars cooling, and more inventory coming to market. While the current environment remains challenging for buyers and sellers alike, the industry is showing early signs of stabilization as it adapts to elevated rates, increased supply, and evolving consumer preferences. Market watchers are closely monitoring whether these adjustments will lead to a more favorable outlook in the second half of 2025.
This content was created in partnership and with the help of Artificial Intelligence AI