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Pending home sales drop, but there’s a silver lining

Housing Wire

It’s no secret that low mortgage rates and societal shifts brought on by COVID-19 have collided to form a red-hot housing market. But many would-be buyers have also been thwarted by comically low resale inventory, as well as supply chain constraints and escalating materials costs that have made life difficult for homebuilders.

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The nation’s housing market is on a correction course

Housing Wire

The Fannie Mae report projects “strong deceleration in home-price growth going forward” due to higher mortgage rates and the overall slowing economy affecting purchase demand. Overall, annual mortgage origination levels are expected to be $2.8 By comparison, home-price growth was 17.8% in 2021, Freddie Mac reports. The Beige Book.

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CITIES FACE DAUNTING OFFICE-VACANCY CHALLENGE

Will Springer Realtor

We certainly see that in all forms of residential real estate – from new construction to finding items for the home. The brighter news is that labor shortages and supply-chain disruptions are improving but it’s hardly “back to normal.” New single-family-home listings rose 3.8%

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Will Springer Realtor - Untitled Article

Will Springer Realtor

This year’s “cold down” is stark, with 36% fewer new listings and about 26% fewer homes under contract (Pendings) for all King County home types combined as well as single-family structures alone – and that’s simply from October to November. Does this signal a peak in mortgage rates or a temporary blip?

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Will Springer Realtor - Untitled Article

Will Springer Realtor

month backlogs of contract work, as of Q4 (latest data available), which is down from the peak of 4.8 In many cases, the long lag time to complete projects is no longer from dreaded supply-chain issues. Falling new inventory is constraining transaction volumes while also supporting higher home prices.