A Glimmer of Hope in a Dysfunctional Housing Market
Frustrated US homebuyers may finally catch a break as rising inventories and motivated sellers may hold down prices next year.
Buyers competing for deals have kept house prices elevated this year.
Photographer: Elijah Nouvelage/Bloomberg via Getty Images
Home prices are once again on the rise following a brief decline. But before would-be homebuyers start to worry about prices zooming higher from here, note the emerging evidence of a shift in the balance of power in the housing market: We’re seeing an unseasonal rise in inventory for existing homes on sale and sellers are becoming more motivated.
These factors set up a housing market that will look different in 2024 with increasing inventory taking some pressure off prices, presenting buyers with better opportunities to seal a deal.
I speculated early last month that the resale inventory picture could turn in the fall. The data that has come in since then give me more confidence in that hunch. At the time weekly new listings of homes were down 21.6% on a year-over-year basis, according to real estate brokerage Redfin Corp. Last week, they were down just 6.7%, and I suspect we will see these listings climb above the year-ago level within a month or two.