Mortgage rates are rising, and the housing market appears to be softening nationwide.
But in many U.S. markets, would-be buyers are facing a big problem: thereās just nothing to buy. Housing inventoryāthe number of homes on the marketāhas been falling since the rebound from the Great Recession as investors snapped up homes and as more older Americans decided to age in place.
Some housing analysts predicted that inventory would start to climb as builders scrambled to finish more new homes. But in markets where thereās not a lot of new construction, including Hartford, Conn. and Buffalo, N.Y., inventory is hovering near historic lows, according to data crunched by Redfin and provided to TIME.
āI donāt think Iāve ever seen it this bad,ā says Becky Koladis, who has been a real estate agent in Hartford for 23 years. āThereās just not a lot to choose from.ā
One reason inventory is so low nationally is that many homeowners were able to lock in record low interest rates in 2020 and 2021. Mortgage rates have skyrocketed since thenāthe rate for a 30-year fixed mortgage reached 6.7% on March 9, nearly double that of a year ago, according to Freddie Mac. That means that homeowners who bought or refinanced with low interest rates are reluctant to sell their homes and buy another with a mortgage with a much higher interest rate.
paywall link
Trump's Fault......(Just getting it out of the way)
Why people of means would want to live in a dem-controlled/crime-ridden concrete plantation not to even mention the tax burden in those areas is beyond me but unless your company moves you why would someone sell off a house with a 3% or less mortgage to go out and buy one at 7%?
IMHO there will not be enough inventory until builders stop building McMansions or realize they have to start building smaller homes so that the average American can afford to buy it.
Look back at the neighborhoods built in the 50's-90's. Lots of smaller homes because interest rates were high.
Residential builders are either going to go out of business or adapt and build smaller homes or multifamily residential.
But in many U.S. markets, would-be buyers are facing a big problem: thereās just nothing to buy. Housing inventoryāthe number of homes on the marketāhas been falling since the rebound from the Great Recession as investors snapped up homes and as more older Americans decided to age in place.
Some housing analysts predicted that inventory would start to climb as builders scrambled to finish more new homes. But in markets where thereās not a lot of new construction, including Hartford, Conn. and Buffalo, N.Y., inventory is hovering near historic lows, according to data crunched by Redfin and provided to TIME.
āI donāt think Iāve ever seen it this bad,ā says Becky Koladis, who has been a real estate agent in Hartford for 23 years. āThereās just not a lot to choose from.ā
One reason inventory is so low nationally is that many homeowners were able to lock in record low interest rates in 2020 and 2021. Mortgage rates have skyrocketed since thenāthe rate for a 30-year fixed mortgage reached 6.7% on March 9, nearly double that of a year ago, according to Freddie Mac. That means that homeowners who bought or refinanced with low interest rates are reluctant to sell their homes and buy another with a mortgage with a much higher interest rate.
paywall link
Trump's Fault......(Just getting it out of the way)
Why people of means would want to live in a dem-controlled/crime-ridden concrete plantation not to even mention the tax burden in those areas is beyond me but unless your company moves you why would someone sell off a house with a 3% or less mortgage to go out and buy one at 7%?
IMHO there will not be enough inventory until builders stop building McMansions or realize they have to start building smaller homes so that the average American can afford to buy it.
Look back at the neighborhoods built in the 50's-90's. Lots of smaller homes because interest rates were high.
Residential builders are either going to go out of business or adapt and build smaller homes or multifamily residential.
