Essential Scoop: Real Estate Slows Down
- HouseCanary reported a shrinkage of 17.5% in net new listings in the real estate market this January.
- Contract signings also crumbled by 2%, thanks to see-sawing mortgage rates.
- Buyers had more homes to choose from with the inventory enjoying a hike compared to 2022 and 2023, but the figure still lags behind historical levels.
- Homeowners are getting cold feet about selling in a higher rate environment, becoming a roadblock to flourishing inventory rates.
Hilariously Horrid or Just Horrid?: Real Estate Highlights
And now for the moment you’ve all been waiting for – the unveiling of my hot, hot, *sizzling* take. Now, passing the microphone to those of you who are perpetually confused by economic trends, let’s break down what this all means.
Given the fact that sellers are pulling a nice ‘ol vanishing act, it’s clear we’ve entered into one of those paradoxical “where-did-everyone-go?” horror movie scenarios. Except the sudden disappearance isn’t caused by a plague or zombies or aliens – it’s instigated by mortifying mortgage rates.
Homeowners have decided that playing hide and seek with potential buyers in a high rate environment is more entertaining than actually selling. Now isn’t that a plot twist worthy of an M. Night Shyamalan film?
The market is bleeding net new listings, with a staggering 17.5 percent drop. Hold onto your hats, folks, because that’s more dramatic than any soap opera episode I’ve ever seen!
Despite an increase in total inventory – a sliver of silver lining in our otherwise cloud-covered saga – we’re still lagging behind historical averages. It seems our protagonist, the real estate market, can’t catch a break, but I say, keep your popcorn ready because every good drama needs a cliffhanger.
So, get your ringside seats for a game between homeowners and the rising mortgage rate monster or the sequel to “Guess Who’s Selling Today?” and we’ll see how this real-estate rollercoaster rides. Keep an eye on the track, though; it’s known to take a sharp curve when least expected. Can’t wait for the next episode of “As the Market Turns”, can you?
Posted: Real Estate Market Downswing: a Tale of Vanishing Sellers, Swinging Mortgages, and A Soap Opera That Never Ends
Original article: https://www.inman.com/2024/02/05/sluggish-net-new-listings-signal-that-the-lock-in-effect-is-not-over/
