Housing market facing supply challenges, homeowners staying put, impacting housing activity and residential investment.

From Yahoo Finance: 2024-06-28 12:40:10

The housing market is facing a major challenge as the supply of homes for sale remains near record lows, leading Bank of America economists to predict that the market will stay stuck until 2026. The “lock-in” effect of homeowners staying put due to securing cheap mortgages during the pandemic is expected to last 6 to 8 years, impacting housing activity and residential investment. Meanwhile, high interest rates are affecting homeownership, with mortgage rates hovering around 7%. Despite home prices hitting a new record in April, annual growth slowed and Bank of America expects prices to grow by 4.5% this year, 5.0% next year, and 0.5% in 2026.



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