The housing market has been in a total sellers market for 2 years now. Low mortgage rates and WFH fueled priced and lowered inventory. Whelp, the 50% increase in YoY payments noted earlier is taking a toll on the market now.
Here’s the change in year-over-year change in inventory from realtor.com via my friend Bill McBride at calculatedriskblog.com
Inventory is now rising year-over-year for the first time since 2019.
As noted at the Irvine Chamber, you can’t fight the Fed. Mortgage rates are and will stay elevated as the Fed raises rates to slow down inflation.
And with that increase in mortgage rates, the housing market will being to cool as housing has now become expensive on a nominal, real, and payment basis.
Perhaps there are better times to buy a home… (pun on “Never a better time to buy a home”)
