Mortgage rates have increased in the last few weeks, but the rise hasn’t translated into more housing inventory on the market, as has typically been the case. This is causing concern among analysts, who acknowledge that this trend is keeping the market in an undersupplied state.
The severity of the housing shortage can largely be attributed to a limited supply of homes as prospective buyers struggle to find properties to purchase. Even when they do, there is heavy competition as many are forced to make offers above the asking price in order to have their offer accepted, with some reports stating that offers are exceeding the asking price by up to $65,000.
The lack of inventory is keeping the market in an undersupplied state:
• Mortgage rates have increased, but the typical benefit of increased rates – more inventory – has not materialized
• Inventory remains limited as buyers are struggling to find properties to purchase
• The competitive atmosphere is prompting buyers to make offers above the asking price
• Reports indicate offers are coming in up to $65,000 than the asking price
• The undersupplied housing market is of current concern.
You can read this full article at: https://www.housingwire.com/articles/inventory-growth-slows-even-with-higher-rates/(subscription required)
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