Declining Housing Market Inventory Spells Bad News for Homebuyers

The US housing market continues to suffer from a declining inventory, making it tough for homebuyers to find affordable housing. According to housing group Redfin, the housing market has 39% fewer homes for sale than before the pandemic. Moreover, the total number of new home listings fell 23% in the past ten months, resulting in reduced options for buyers and more competition in the market. Mortgage rates continue to be high, and with the Fed’s indication of interest rate hikes, they are expected to go higher. This trend is likely to push mortgage rates up further, making it less likely for mortgage rates to decline anytime soon. The current situation in the housing market has made it challenging for new buyers to enter the market, say experts. With demand continuing to outpace supply, home prices are expected to remain elevated for the foreseeable future.