Homebuilders have had the upper hand in the housing market. Lower rates may change that.

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Toll Brothers Nyheter

Resale Market,Meritage Homes,Mortgage Rates

Homebuilders have benefitted from a lack of housing supply in the existing market for years since the pandemic. Now, their advantage may be withering.

Builders over the past few years had been in a hurry to build houses to address the supply shortage in the resale market, as high borrowing costs discouraged homeowners from selling. But now, inventory of both new and existing homes is finally rising and heating up some competition.

Toll’s customers tend to be more affluent, with more cash on hand than entry-level buyers. That appetite has helped Toll’s demand remain steady compared to sales levels of other builders. Still, orders per community fell by 2% on a yearly basis. Still, the recent decline in mortgage rates could ease the years-long mismatch between supply and demand that has been so

And some sellers have already ventured back into the market as rates have come down. Total housing inventory at the end of June landed at 1.32 million units — a 23.4% increase from a year ago,"We're seeing a slow shift from a seller's market to a buyer's market," NAR chief economist Lawrence Yun said last month.

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