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Inventory needs to increase to balance housing market: Fed Beige Book

Housing Wire

While home prices have started to inch down, more inventory is needed for a balanced housing market, the Federal Reserve Beige Book said. Housing markets continued to weaken, with sales and construction declining across [all 12 Federal Reserve] districts,” according to the Federal Reserve Beige Book released on Wednesday.

Inventory 377
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The standoff between homebuyers and sellers

Housing Wire

There’s a showdown at the housing market corral between homebuyers and sellers. Home prices ebb and flow, pricing was working in the sense that sellers met homebuyers to a degree. To have a balanced housing market, we need active listings to rise yearly, which they typically do; 2020 was an anomaly.

Sellers 498
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Spring housing market gets more inventory

Housing Wire

This isn’t saying too much since 2023 had the lowest recorded level of new listings ever, but it’s still a plus in my book.

Inventory 495
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Existing home sales data shows extent of housing inflation

Housing Wire

Existing home sales have more legs to go lower, especially now that new listing data is falling. A traditional primary resident seller is also a buyer, which means if they don’t list, they’re not just taking a potential home to be bought off the table — they’re taking a future sale off the books as well.

Inventory 438
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The nation’s housing market is on a correction course

Housing Wire

Rising interest rates and a slowing economy overall are already taking some of the air out of the rapid home-price appreciation the housing market has experience over the past year, according to the recently released Federal Reserve Beige Book for July. The Beige Book.

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The silver lining in the existing home sales report

Housing Wire

Well, that got smashed in just two years, and 2022 is another year on the books with significant price gains. Rates have gone up so fast that new listing data has declined since the end of June; this impacts supply and demand. having rates of 5% and below, you can see why some sellers are hesitant to list their homes and move.

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Higher rates flip the homebuilders’ fortunes (again)

Housing Wire

I wouldn’t read too much into the fact that this new home sales report beat estimates, but I would say that in the future, if mortgage rates get back toward 6%, the homebuilders have creative ways to sell their homes that the existing home seller might not be inclined to do.

Inventory 424