The number of home for sale in the US rose 2% in June, the first time in three years inventory has increased, according to Redfin.
While the pandemic housing market was marked by a shortage of homes that fueled bidding wars and surging prices, the recent rise in listings comes as higher mortgage rates and the faltering economy are keeping more buyers on the sidelines.
“The country’s economic woes have already cooled the housing market, and they’re likely to continue dampening demand,” said Redfin Chief Economist Daryl Fairweather.
It’s a tricky time for potential buyers who are weighing how high mortgage rates will climb, and whether or not prices will come down.
Redfin said that home sales slipped 16% in June, the biggest year-over-year decline since May 2020, when the early pandemic lockdowns were still hampering the market. Home prices, meanwhile, gained 11%, the smallest increase in two years.
Published by Bloomberg