US housing market sees worst inventory shortage in a decade amid high rates

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The housing market is seeing its worst inventory shortage in over a decade as high rates trap homeowners and slow the spring homebuying rush

, with the shortage in inventory pushing prices higher and slowing sales activity.

In fact, 38% of properties last month sold above their listing price, Redfin said. Meanwhile, pending home sales dropped 16%, a sign that the spring homebuying rush has faltered in the face of higher mortgage rates. "There are two things that would jumpstart the housing market: A big drop in mortgage rates and/or a big surge of new listings … Neither of those things happened this spring," Redfin's deputy chief economist Taylor Marr said in aon Thursday."Instead, rates rose and new listings dropped to record lows.

until mortgage rates drop more meaningfully, Marr previously told Insider, though he said that was unlikely to happen anytime soon. He predicted mortgage rates would likely ease to just around 6% by the end of the year.

 

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