The spring housing market in the United States is presenting a tough challenge for potential homebuyers, as low inventory levels are driving up prices and making negotiations more difficult. According to Altos Research, as of April 17, there were only 66,000 new listings of single-family homes nationwide, and 25% of them were already under contract. This is significantly lower than last year, when there were 100,000 new listings, and 30% of them were under contract immediately. As a result, buyers are finding far fewer options and little room to negotiate.
One reason for the low inventory levels is that a growing share of homeowners are deciding against listing their houses for sale, which is adding to the inventory woes for buyers. The number of single-family homes on the market across the country fell to 405,000, which is 57% more than last year at this time, but inventory continues to dwindle by the week. One reason potential sellers are opting to forgo listing is that they simply don’t want to give up their current, ultra-low mortgage rate to buy in a competitive market with higher rates.
For those sellers still in the market, they are finding their edge as buyers lose advantages they briefly had in the winter months. At least 29.8% of active homes on the market have taken a price cut for the week of April 17, down 40% from the start of the year. Builders were slightly more optimistic in April, as limited resale inventory lured buyers to the new home market. According to the National Association of Home Builders, one-third of housing inventory is new construction, compared with historical norms of about 10%. However, fewer builders are offering price reductions, with 30% reducing their home prices in April, down from 31% in March and February and 35% in December.
What you can do now
Despite the challenges facing buyers in the current market, it’s important not to get discouraged. With the right approach and guidance from a qualified real estate professional, buyers can still find the home of their dreams. So if you’re in the market to buy a home, don’t hesitate to reach out to a local real estate agent who can provide the support and resources you need to navigate the market successfully.
At Hatch Homes Group, we specialize in helping buyers find the perfect home, even in the most challenging markets. Our team of experienced agents has a deep understanding of the local real estate landscape and can provide you with the personalized attention and expertise you need to achieve your goals. So why wait? Contact us today to schedule a consultation and learn more about how we can help you get started on your home-buying journey.