Housing inventory

But improved for-sale supply is providing buyers with more options and helping to keep softer price pressures for those looking to buy, writes Cotality's Chief Economist.

Wall Street is cranking up the bond machine as US homeowners, finding that buying a new house is out of reach since mortgage rates started climbing in 2022, are instead getting home equity loans and sprucing up their current properties.

The publicly traded firm said it anticipates more deals after making its first loan to a developer for $32.7 million, which will support 156 homes in Houston.

The combined prices of properties on the market for more than 60 days currently make up close to half of total unsold dollar volume, according to Redfin.

Pending sales of previously owned US homes last month fell by the most since September 2022, illustrating a disappointing spring selling season as prospective buyers balk at high asking prices and borrowing costs. 

The run-up in prices since the pandemic, and mortgage rates hovering near 7%, have squeezed affordability for house hunters, pushing many to the sidelines.

Housing starts increased in April as a pickup in multifamily home construction more than offset a decline in single-family dwellings caused by elevated inventory.

A growing supply of unsold inventory applied downward pressure on prices, offering home buyers some relief, the Mortgage Bankers Association said.

The builder reported increased revenue from a year ago, with profits near par, as it sets to absorb new acquisitions across different lines of business.

As the lock-in effect deters many current homeowners from buying, the housing market is seeing younger clients stepping in, often with government-backed loans.