The US real estate landscape is currently “no one’s market”, according to . Chief Economist Danielle Hale wrote last week that buyers and sellers remain hesitant. She added “the worst of the declines may be behind us”. Something is loading.
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The U.S. housing market is stalled as buyers and sellers remain hesitant, according to a report from .
“Data this week suggests that housing is still largely a ‘nobody’s market,'” chief economist Danielle Hale wrote on Feb. 9. “The number of owners deciding to sell continues to lag a year ago, but inventory and time on market continue to rise, reflecting still hesitant buyers.”
The data she highlighted includes an 11% year-over-year drop in new listings, signaling that sellers are putting fewer homes up for sale.
True, total inventory of homes for sale continued to rise, but it climbed at a slower annual rate, Hale added. And the growing number of options for sale also signals weak demand.
“As new listings decline, the growing number of homes for sale reflects continued low buyer interest amid high costs,” she wrote.
In fact, homes spent 19 more days on the market than they did a year ago, Hale noted.
But she also pointed to encouraging signs for buyers, who are less likely to miss out if they take longer to make offers and may find that sellers are more willing to be flexible on the terms of the deal.
“Sales aren’t returning to pandemic-era levels any time soon, but there’s reason to believe the worst of the declines may be behind us,” Hale said.
Meanwhile, U.S. home prices are set to fall further this year as the Federal Reserve continues to hike interest rates, according to real estate veteran and board member Jeff Taylor. the Mortgage Bankers Association.
This is despite 30-year mortgage rates falling nearly 100 basis points since October, which could potentially draw some buyers back into the market.
According to Freddie Mac, mortgage rates have fallen back towards 6% after peaking at over 7% in November last year. As of February 9, the average 30-year fixed rate mortgage was 6.12%.