Number of Avilable Homes Spikes at Record Pace

    Last week, we talked about consumer confidence in the current housing market. This week, we’re going to discuss the recent spike in available homes. We will be referencing this article from Business Insider.

    Over the last year, we’ve seen the housing market do a complete 180.

    Demand Surge

    Instead of demand surging at a record pace, the supply of available homes is now beginning to rise. The national inventory of available homes rose by 30.7% in the year through July, according to report that was published earlier last week.

    That’s the fastest pace we’ve seen since at least 2017 and the third consecutive month of record-breaking inventory growth.

    Compared to this time last year, there are 176,000 more homes actively for sale.

    Unsold Homes

    The total supply of unsold homes rose by 3.5%, its first increase since September of 2019. The gauge showed annual declines throughout the majority of the pandemic as most homes spent only a few days on the market.

    The rebound in home supply is a development welcomed by all Americans who have been waiting to purchase their first home for some time now. 

    Many construction projects have stopped during the pandemic due to labor shortages and supply chain issues, making building a home more costly and more difficult than ever before.

    Mortgage Rates

    Sky high mortgage rates have also played a role in slowing down home buyer demand and the housing market’s price surge. The Fed has been raising interest rates at the fastest pace since the 1980s as it aims to cool inflation rates.

    The average rate on a 30-year fixed mortgage is 4.99%, down slightly from the 5.81% we saw in June, but still more than two points higher than this time last year.

    After several months of bidding wars that pushed selling prices higher, sales of both new and existing homes are down significantly.

    Latest Articles

    Related Articles

    Leave a reply

    Please enter your comment!
    Please enter your name here