During the four weeks leading to June 11, the total number of U.S. homes for sale saw the biggest decline in 13 months, leaving the housing market with 39% fewer homes for sale than before the pandemic, Insider reports. In addition to a home building slump, new home listings fell 23%, marking the 10th consecutive month of double-digit declines caused, in part, by rising mortgage rates discouraging sellers from listing their homes.
To make matters worse, the Federal Reserve indicated last Wednesday that more rate hikes are likely before the end of the year, meaning buyers and sellers who have been sitting on the sidelines may have to wait even longer.
"The Fed's indication that there are more rate hikes to come is not what homebuyers want to hear," Redfin's Chen Zhao said.
Since owners don't want to move, buyers have fewer options and face more competition on the market. And with demand outpacing supply, that means prices probably won't see any meaningful declines.
