Although there's still a shortage of housing inventory, listings for existing homes have increased year-over-year, showing the market may be starting to balance itself out. According to the Calculated Risk blog, new listings increased by 6.3% year-over-year as of June 2024, surpassing May's 5.9% increase. This June marked the eighth consecutive month of rising listing activity following a 17-month decline. Despite these gains, the housing market remains below pre-pandemic levels, with many would-be sellers opting to stay out of the market to avoid high mortgage rates.
And there are homeowners who want to sell for a number of reasons: upsizing (more babies), downsizing, moving for a new job, or moving to a nicer home or location (move-up buyers). It is some of the “want to sell” group that has been locked in with the golden handcuffs over the last couple of years, since it is financially difficult to move when your current mortgage rate is around 3%, and your new mortgage rate will be around 7%.
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