Prashant Gopal at Bloomberg writes that more homeowners are deciding to cash in on the housing frenzy taking over the country…
- More homes on the market saw their biggest increase since Covid-19 lockdowns took hold in 2020. “The number of U.S. homes for sale climbed 6.7% in early June from the same weekly period in May, according to Haus, an investment platform for homebuyers.”
- This is a good first step. However, there is still a long way to go as inventory is still down almost 38% from a year earlier and near historic lows. However, “…with bidding wars erupting from coast to coast, any sign of increased supply is a welcome respite for buyers. More listings also may help ease a problem contributing to the scarcity: sellers staying put because it’s a struggle to find something else to purchase.”
- Good news for wannabe buyers. More homes entering the market should also cool off price spikes. Ralph McLaughlin, chief economist at Haus said “he expects U.S. home-price growth to slow to less than 10% by the end of the year. Demand may also cool as buyers are priced out, especially if borrowing costs start to rise.”