Building more housing is imperative, and federal and local governments can help by reforming zoning and making the building process easier. But there are a few other things that would boost turnover and help make homes more affordable. “Mortgage rates dropping closer to 5% would make the biggest dent in the affordability crisis by freeing up some inventory and bringing monthly payments down. The typical home is selling for about 40% more than before the pandemic,” said Redfin Deputy Chief Economist Taylor Marr. “The quick increase in mortgage rates created an uphill battle for many Americans who want to buy a home by locking up inventory and making the homes that do hit the market too expensive. The supply of homes for sale is now at a record low, and millions of new homes need to be built to meet demand. The ‘lock-in effect,’ in which homeowners are disincentivized to list their homes for sale because of the cost/difficulty in finding a new home, is seriously inhibiting the supply of existing homes available for sale. A more active market would have a rate closer to 40 or 50 for every 1,000 homes. Redfin’s analysis, which uses turnover as a measure of housing availability, includes overall for-sale housing turnover and breakdowns based on neighborhood type and home type.Īs a frame of reference, a 20/1,000 turnover rate is a fairly typical for the modern housing market. In other words, prospective homebuyers have 28% fewer homes to choose from than they did before the pandemic. It’s the lowest turnover rate seen in at least a decade. That’s down from 19 of every 1,000 during the same period in 2019. homes changed hands according to a report released by Redfin. In the first six months of 2023, roughly 14 of every 1,000 U.S. High mortgage rates and depleted housing inventory have exacerbated an already existing housing availability crisis.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |