The number of new listings rose 8% in May, the first gain since June 2019, though inventory remains at a historic low nationwide, Realtor.com reports. The median asking price climbed to a record high $447,000 in May, a 17.6% year-over-year increase leading to a significant drop in buyer demand.
In order to attract offers, sellers in some regional markets are lowering their asking prices, and a softening in price growth and in the pace of new home sales is shifting a buyer-seller dynamic that has long given sellers the upper hand.
Despite growing inventory, many homebuyers might still feel squeezed in terms of their pocketbooks.
Combined with rising mortgage rates (now over 5%), the cost of financing a home is up 50% over a year ago. As a result, some homebuyers have given up their house hunt until home prices and/or interest rates fall back within realistic reach—whenever that may be.
Advertisement
Related Stories
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
Labor + Trade Relations
Who's Earning What in Construction
Workers in construction management roles may earn a higher median wage, but on average, lower-paid occupations have experienced somewhat faster wage growth
Build to Rent
Build-to-Rent Is Booming, Particularly in These Metros
A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development