The U.S. housing market isn’t heading to a crash, and signals suggest that a home price recovery is underway.
According to real estate data company Altos Research, March 2023 begins with just 429,000 single-family homes for sale, marking the tightest home inventory since last June.
The National Association of REALTORS® also reports low home inventory.
In its most recent Existing Home Sales report, the real estate trade group shows the national housing supply at 2.9 months, which means at the current sales pace for homes, every residential property for sale would get sold by late May.
When home supply is less than six months, prices tend to climb.
Home prices are also getting pressure from a new wave of buyers.
Homebuyer.com data shows a 15.4 percent jump in first-time home buyer mortgage applications in February compared to the prior month, and search traffic for first-time home buyer queries such as “first-time home buyer programs” and “what credit score do you need to buy a house” are up by similar amounts. Data points like these are the hallmarks of healthy, expanding markets. Read more on Homebuyer.com.
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