The housing market recession is already ending

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Last year’s downturn in the housing market didn’t last, even with higher interest rates. Now prices are stabilizing as supply chains ease up.

But there are signs that a recovery is underway. Sales of newly built single-family homes jumped in May to the highest level since February 2022, according to the most recent data from the Department of Housing and Urban Development and the Census Bureau. That marked a 12.2 percent increase compared with the previous month.New homes also made up 31 percent of the total inventory in May, compared with a more typical, pre-pandemic 15 percent, according to the National Association of Home Builders.

Location matters. Seasonally adjusted data showed that of the 20 largest metro areas tracked by the index, only one saw price drops between March and April. Prices in Boston rose 1.5 percent over the month. In Charlotte, 0.7 percent.Five years ago, Jay Thompson bought his house in Matlacha, Fla., for $375,000. Back then, he didn’t think he’d be there for the long haul; he likes to fish, and his wife wanted to be closer to the beach.

Still, Thompson wonders if sellers in the area will keep chasing last year’s peak sale prices even as the market recalibrates.

 

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