US Real Estate Sector Experiences Listing Surge Amidst Buyer Absence

Real Estate in US: Listings Surge, Buyers Absent

The long-awaited surge in real estate listings in the US has finally arrived, offering hope to sellers in a market historically plagued by scarcity. However, this uptick in inventory is overshadowed by a conspicuous absence of potential buyers, as persistently high interest rates deter engagement in what is typically the prime season for real estate transactions.

Sellers Forced to Adjust Prices Amidst Stagnant Inventory

With mortgage rates surpassing 7%, sellers are facing the harsh reality of reduced buyer interest. According to Redfin Corp., more sellers are now lowering their asking prices than at any point since November 2022, as the inventory remains stagnant.

High mortgage rates hinder seller success; reduced demand prompts price drops, stagnating inventory challenges market, Barron’s Print Edition said.

Economic Momentum Dashes Hopes for Rate Reductions

Optimism at the beginning of the year, fueled by expectations of interest rate cuts by the Federal Reserve, has dwindled as the economy maintains its momentum. Without these anticipated rate cuts, the housing market is grappling with a harsh reality, as observed by Robert Frick, corporate economist for Navy Federal Credit Union.

Buyers Struggle with High Borrowing Costs and Soaring Prices

Prospective homebuyers are finding little relief from exorbitant borrowing expenses, with average mortgage rates hovering near 7% since mid-April. Meanwhile, prices continue to climb, with the median sale price reaching a record $390,613, according to Redfin.


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Disappointing Sales Reflect Nationwide Trend

Both new and existing home sales are experiencing declines, resulting in a buildup of listings without corresponding buyer activity. Lawrence Yun, chief economist for the National Association of Realtors, describes the current spring selling season as “undoubtedly disappointing.”

Regional Disparities Emerge Across the Country

While sales are declining on average nationwide, regional disparities are evident. Sun Belt markets like Florida and Texas are cooling off due to affordability issues, while Western metros like Seattle and the San Francisco Bay Area are showing signs of recovery.

Local Perspectives Highlight Market Challenges

Real estate agents across the country share their frustrations as once-booming markets stagnate. From Nashville’s suburbs to Florida’s southwestern coast, stagnation is evident, with low-ball offers and increased inventory becoming commonplace.

Future Outlook: Gradual Deceleration in Price Appreciation Expected

Redfin Economist Chen Zhao anticipates a potential slowdown in price appreciation in the upcoming months, albeit gradual. Despite ongoing challenges, the market is expected to be buoyed by pent-up demand from Millennials.


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