Home sales are 'stalled,' but will the market get moving soon?

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The housing market is in a bit of a stuck position with limited inventory and high prices keeping sales volume down, but the National Association of Realtors is

FILE - A sale sign stands outside a condominium complex along Speer Boulevard Wednesday, Sept. 27, 2023, in Denver. forecasting the second half of next year will look like a more normal market.

Competition is slowing faster than normal this fall, which is already a time when housing inventory contracts.approaching 8% are taking the wind out of the market's sails, pushing monthly mortgage payments beyond many buyers' budgets," Jeff Tucker, Zillow senior economist, said in a news release. Existing homeowners with lower mortgage rates have been reluctant to sell, which is one of the reasons inventory is low.New listings were still down nearly 18% this September compared to the same month in 2019. But that’s better than the 27% difference between July of this year and July 2019.NAR’s data shows median existing-home prices have ballooned over 40% since before the pandemic.But mortgage rate increases have also blocked buyers from the market.

Meanwhile, more first-time buyers who are finding homes and borrowing more expensive are left relying on “the bank of mom and dad,” Lautz said.NAR is expecting more of the same over the next couple of months if mortgage rates don’t change.

 

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This Week in Business: Retail sales, home sales, industrial productionThe Commerce Department reports on retail sales for September on Tuesday. The Federal Reserve issues its monthly industrial production report, for September, also on Tuesday. The National Association of Realtors issues its home sales report for September on Thursday.
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