Hello Everyone:  Thought this article would be of interest to you. Over and over again I keep hearing there are not enough homes for sale for buyers wanting to buy.  This article seems to confirm this.

Housing Starts, March 16, 2023

March 16, 2023

Multifamily Properties

By: Lawrence Yun

Apartment and multifamily housing construction continued its near 40-year high trends with 620,000 units started in February. The market is responding to solid rent growth and low vacancy rates of both apartments and single-family rental units. But with such active construction, plenty of empty units will be hitting the market throughout this year and the next. Rents will calm down – a preferred way to rent control – and will even drive the overall consumer price inflation to be manageable.

Single-family home construction is much more restrained. Only 830,000 units were started, well below the pre-COVID year of 2019, and lower than the one million units historical average and required given the normal population growth. It is understandable given high mortgage rates for homebuilders to be cautious. However, once rents and consumer price inflation calm down, mortgage rates will be lower. Will there be enough inventory to satisfy rising home purchase demand?

 

Lawrence Yun

Chief Economist

Lawrence Yun is Chief Economist for the National Association of REALTORS®. 

 Hello everyone:  I think this is a great update for everyone to read !  Have fun.

Instant Reaction: Mortgage Rates, March 16, 2023

March 16, 2023

Mortgage Financing

By: Nadia Evangelou

Due to recent developments in the banking sector, mortgage rates fell this week. Following the trend of the 10-year Treasury yield, the average rate on a 30-year fixed mortgage dropped to 6.60% from 6.73%. However, rates may decrease even further in the coming weeks depending on reactions in the financial market and the outcome of the Fed’s meeting next week.

However, this rate drop was enough to make homebuying affordable again for many Americans. At today’s rate, many can afford to buy a median-priced home since they need to spend less than 25% of their gross income for a monthly mortgage payment. If rates fall further to 6%, buyers will be able to purchase the median-priced home by putting down 14%, which was the median down payment of buyers in 2022.

 

Nadia Evangelou

Senior Economist & Director of Real Estate Research

Nadia Evangelou is Senior Economist & Director of Real Estate Research for the National Association of REALTORS®.