Housing Market Competition is Finally Cooling Off

(VitalNews.org) – Homeowners are still looking to list their homes for sale as the market continues to rise, but buyers are not buying these properties fast enough since they continue to face high prices and high interest rates.

New listings from sellers increased in May according to the latest market report done by Zillow, but buyers are still not quick to purchase these listings. Orphe Divounguy, a senior economist at Zillow, explained what is happening with the market now and why.

“You have an increase in sellers coming back on the market,” said Divounguy. Many new listings are ultimately just adding to the inventory while buyers are still reluctant to buy. Divounguy continued, “Homes are staying on the market for a bit longer because the sales are not keeping up with the flow of homes coming on the market.”

According to Redfin, about two-thirds of the homes that were listed in May had been on the market for over thirty days without going under contract. Forty percent of the homes in May that were listed for sale had been listed for at least two months without going under contract.

Daryl Fairweather, chief economist at Redfin, said, “The market is slowing down. Homes are taking longer to sell and that allows inventory to accumulate on the market.”

He continued to say that they are still facing a shortage of homes for sale despite the recent jump in the supply of these homes. He stated that we are short over four million homes and that “We’re still in a housing unit deficit.”

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