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Residential real estate activity picks up despite low inventory

Housing Wire

New home builders have benefited from the unseasonably modest sales of existing homes as the resale market has slowed. Cleveland – Demand for residential construction and real estate has stabilized in this District, and contacts attribute this stabilization to the arrival of spring and flattening interest rates.

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Inventory needs to increase to balance housing market: Fed Beige Book

Housing Wire

High inflation has reduced consumers’ purchasing power, which has led to weakened sales and construction across all 12 Federal Reserve districts. While home prices have started to inch down, more inventory is needed for a balanced housing market, the Federal Reserve Beige Book said. However, housing affordability worsened.

Marketing 448
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Fed’s Beige Book predicts further uncertainty for the housing market  

Housing Wire

“Higher interest rates further dented home sales, which declined at a moderate pace overall but fell steeply in some Districts,” the report states, noting that “residential construction slid further at a modest pace” and “home prices grew less rapidly or declined outright amid weak demand.”. Existing home sales fell steeply in most markets.

Marketing 370
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Fed’s Beige Book shows recent moderation in mortgage rates propped up demand for homes

Housing Wire

But real estate agents noted that higher interest rates have severely limited new listings over the past year and were responsible for the significantly lower level of closings. Most expect their pipeline of contracts to keep construction busy through the year. Days on market increased slightly but remained below historic averages.

Mortgages 448
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New home sales rebound, but builders are still wary

Housing Wire

months, this is an OK market for the builders. months and above, the builders will pull back on construction. It is an embarrassment, but construction productivity — which has been terrible for decades — is now also dealing with shortages that delay finishing homes. When supply is 4.4 When supply is 6.5

Sales 476
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The nation’s housing market is on a correction course

Housing Wire

“With inflation running well above the target rate, the market’s expectation that further, substantial monetary tightening is needed has driven interest rates even higher, and interest rate-sensitive sectors, including housing, are slowing in response,” said Fannie Mae Senior Vice President and Chief Economist Doug Duncan.

Marketing 418
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Fed’s Beige Book offers grim news for housing industry

Housing Wire

Boston — Higher interest rates cooled home-buying demand, leading to fewer closed sales in the First District’s residential real estate markets. Closed sales fell sharply over the year in all reporting markets in a notable weakening from the previous report. Minneapolis — Residential housing slowed.