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Housing’s Scarce Supply Derails Buyers at Key Time for US Deals

A drop in new listings is stifling sales even as some buyers are lured in by the decline in mortgage rates.

A residential neighborhood in Austin, Texas.

Photographer: Jordan Vonderhaar/Bloomberg
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The housing market is trying to find its footing as the key spring home-sales season kicks off in the US. For shoppers, their chances of winning a deal depends on where they’re looking.

More homebuyers signed contracts in February compared to a month earlier and a slight dip in borrowing costs is providing some relief. But transactions remain hobbled by a shortage of listings and an affordability crisis that is only beginning to ease. Now, the market is grappling with fallout from regional-bank failures and how it might affect interest rates and consumer confidence.