Sign up to save your podcasts
Or
Share US Housing Market Navigates Transition: Inventory Growth, Affordability Challenges, and Shifting Dynamics
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
US Housing Market Navigates Transition: Inventory Growth, Affordability Challenges, and Shifting Dynamics
The US housing industry over the past 48 hours reveals a market at a crossroads, shaped by growing inventory, persistent affordability issues, and changed consumer habits. As of June, active home listings climbed to 1.36 million, a 17.2 percent increase from last year and the highest since 2019. Inventory growth is giving buyers more options and bargaining power—26.6 percent of homes saw price cuts in June, the highest for that month since tracking began in 2018. However, sustained high mortgage rates, hovering near 7 percent, continue to keep many would-be buyers, especially first-timers, out of the market. This has resulted in a record 14.9 percent of pending home sales canceled in June, as more buyers walk away from deals than in previous years.
Sellers are responding in different ways. Instead of lowering prices significantly, many are simply withdrawing their homes from the market—delistings jumped 35 percent year to date and 47 percent year over year in May, outpacing the growth in new listings. This dynamic shows that sellers, often leveraging record home equity, are able to hold out for better offers, which is keeping the national median list price steady despite downward pressure in some regional markets, particularly in the South and West.
The market is not uniform. Multifamily housing and rental markets remain more resilient compared to single-family homes. Multifamily REITs enjoy high occupancy rates above 95 percent, as rising mortgage costs push more households toward renting. However, recent construction booms in some Sunbelt cities have led to oversupply and flat rent growth, though building activity has now slowed, hinting at potential stabilization.
With 38 percent of homebuilders reporting price cuts in July—the highest rate since 2022—builders and industry leaders are becoming more cautious, cutting prices or offering incentives, but also holding back on new projects in some segments. Permitting for new single-family homes is softening, while multifamily permits are steady after a post-pandemic dip.
Overall, the market is slowly transitioning from the volatility of the past two years towards a more balanced, if subdued, environment. Prices overall have plateaued—Zillow data shows a mere 0.2 percent increase year over year, down from over 3 percent the previous year. Experts do not forecast a crash or major national decline but expect steady, slower growth and continued regional variation as both buyers and sellers navigate economic uncertainty and high financing costs.
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI
Sellers are responding in different ways. Instead of lowering prices significantly, many are simply withdrawing their homes from the market—delistings jumped 35 percent year to date and 47 percent year over year in May, outpacing the growth in new listings. This dynamic shows that sellers, often leveraging record home equity, are able to hold out for better offers, which is keeping the national median list price steady despite downward pressure in some regional markets, particularly in the South and West.
The market is not uniform. Multifamily housing and rental markets remain more resilient compared to single-family homes. Multifamily REITs enjoy high occupancy rates above 95 percent, as rising mortgage costs push more households toward renting. However, recent construction booms in some Sunbelt cities have led to oversupply and flat rent growth, though building activity has now slowed, hinting at potential stabilization.
With 38 percent of homebuilders reporting price cuts in July—the highest rate since 2022—builders and industry leaders are becoming more cautious, cutting prices or offering incentives, but also holding back on new projects in some segments. Permitting for new single-family homes is softening, while multifamily permits are steady after a post-pandemic dip.
Overall, the market is slowly transitioning from the volatility of the past two years towards a more balanced, if subdued, environment. Prices overall have plateaued—Zillow data shows a mere 0.2 percent increase year over year, down from over 3 percent the previous year. Experts do not forecast a crash or major national decline but expect steady, slower growth and continued regional variation as both buyers and sellers navigate economic uncertainty and high financing costs.
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI
View all episodes
By Inception Point AiThe US housing industry over the past 48 hours reveals a market at a crossroads, shaped by growing inventory, persistent affordability issues, and changed consumer habits. As of June, active home listings climbed to 1.36 million, a 17.2 percent increase from last year and the highest since 2019. Inventory growth is giving buyers more options and bargaining power—26.6 percent of homes saw price cuts in June, the highest for that month since tracking began in 2018. However, sustained high mortgage rates, hovering near 7 percent, continue to keep many would-be buyers, especially first-timers, out of the market. This has resulted in a record 14.9 percent of pending home sales canceled in June, as more buyers walk away from deals than in previous years.
Sellers are responding in different ways. Instead of lowering prices significantly, many are simply withdrawing their homes from the market—delistings jumped 35 percent year to date and 47 percent year over year in May, outpacing the growth in new listings. This dynamic shows that sellers, often leveraging record home equity, are able to hold out for better offers, which is keeping the national median list price steady despite downward pressure in some regional markets, particularly in the South and West.
The market is not uniform. Multifamily housing and rental markets remain more resilient compared to single-family homes. Multifamily REITs enjoy high occupancy rates above 95 percent, as rising mortgage costs push more households toward renting. However, recent construction booms in some Sunbelt cities have led to oversupply and flat rent growth, though building activity has now slowed, hinting at potential stabilization.
With 38 percent of homebuilders reporting price cuts in July—the highest rate since 2022—builders and industry leaders are becoming more cautious, cutting prices or offering incentives, but also holding back on new projects in some segments. Permitting for new single-family homes is softening, while multifamily permits are steady after a post-pandemic dip.
Overall, the market is slowly transitioning from the volatility of the past two years towards a more balanced, if subdued, environment. Prices overall have plateaued—Zillow data shows a mere 0.2 percent increase year over year, down from over 3 percent the previous year. Experts do not forecast a crash or major national decline but expect steady, slower growth and continued regional variation as both buyers and sellers navigate economic uncertainty and high financing costs.
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI
Sellers are responding in different ways. Instead of lowering prices significantly, many are simply withdrawing their homes from the market—delistings jumped 35 percent year to date and 47 percent year over year in May, outpacing the growth in new listings. This dynamic shows that sellers, often leveraging record home equity, are able to hold out for better offers, which is keeping the national median list price steady despite downward pressure in some regional markets, particularly in the South and West.
The market is not uniform. Multifamily housing and rental markets remain more resilient compared to single-family homes. Multifamily REITs enjoy high occupancy rates above 95 percent, as rising mortgage costs push more households toward renting. However, recent construction booms in some Sunbelt cities have led to oversupply and flat rent growth, though building activity has now slowed, hinting at potential stabilization.
With 38 percent of homebuilders reporting price cuts in July—the highest rate since 2022—builders and industry leaders are becoming more cautious, cutting prices or offering incentives, but also holding back on new projects in some segments. Permitting for new single-family homes is softening, while multifamily permits are steady after a post-pandemic dip.
Overall, the market is slowly transitioning from the volatility of the past two years towards a more balanced, if subdued, environment. Prices overall have plateaued—Zillow data shows a mere 0.2 percent increase year over year, down from over 3 percent the previous year. Experts do not forecast a crash or major national decline but expect steady, slower growth and continued regional variation as both buyers and sellers navigate economic uncertainty and high financing costs.
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI