All articles tagged with #inventory shortage
Apple is expected to update its retail stores on November 12th, possibly with visual holiday-themed changes, but new Apple TV and HomePod mini models are unlikely to launch before the year's end due to inventory shortages and the company's focus on other products. Any refresh of these devices might be announced soon, but a release before 2024 remains uncertain.
The US housing market experienced its slowest spring in over a decade due to high prices, rising mortgage rates, and economic uncertainty, leading to decreased sales and increased price reductions, with regional variations influencing market dynamics.
Mortgage rates have continued to decline, sparking some signs of life in the stagnant real estate market. The average rate for a 30-year fixed mortgage fell to 6.67% this week, down from 6.95% last week. The rate on a 15-year fixed mortgage also dropped to 5.95%. While this has brought potential home buyers back into the market and led to a rise in home builder confidence and new construction, economists do not expect affordability to improve significantly in the near future. Home prices remain elevated, and the housing market continues to face a shortage of inventory.
Mortgage rates have dropped below 7% for the first time in months, leading to an increase in purchase applications. However, the low inventory of homes on the market is keeping prices elevated, making it difficult for prospective buyers. The Mortgage Bankers Association reported a six-week consecutive increase in mortgage applications, but purchase volume remains lower than last year. Many homeowners with lower rates are choosing to stay put, contributing to the inventory shortage. Economists predict that the affordability crisis will persist due to the disparity between current market rates and lower rates enjoyed by existing homeowners.
Mortgage rates have fallen for the sixth consecutive week, reaching just above 7%, which has sparked some activity in the refinance market. While the dip in rates has enticed homeowners looking to refinance, potential homebuyers remain hesitant, resulting in a depressed housing market. The shortage of inventory and elevated home prices have contributed to the lack of activity. Some buyers have turned to adjustable-rate mortgage loans (ARM) as an alternative, while others have shifted their focus to new construction. The refinance market has seen a boost, with applications increasing by 14% from the previous week. However, overall refinance activity remains low, and it is uncertain if this increase signals a recovery in the market.
Despite a 13-year low in overall home sales and an increase in existing home prices, the luxury real estate market remains strong. In the third quarter of 2023, the luxury market grew at three times the rate of the mainstream market, with a record high median price of $1.1 million, up 9 percent from last year. Cash purchases accounted for 42.5 percent of luxury home sales, allowing wealthy buyers to weather high mortgage rates. Affluent Americans continue to spend big due to pandemic savings and resilient housing and stock values.
Mortgage rates have fallen for the second consecutive week, but they remain at their highest level in over two decades, offering little relief to new homebuyers. The average rate on the benchmark 30-year fixed mortgage dropped to 7.5% from 7.76% the previous week, while the average rate on the 15-year note fell to 6.81% from 7.03%. However, the high cost of living, coupled with rising household debt, continues to strain consumers, keeping the housing market stagnant. The surge in home prices and mortgage rates has led to a 7.4% increase in monthly costs, making it more challenging for buyers to afford homes.
Sales of newly built homes in the U.S. surged 12.3% in September, reaching the highest level since February 2022, as prospective homeowners turned to homebuilders due to a lack of inventory in resale homes. The median sales price of new homes decreased, and the supply of new homes for sale also fell. While new-home sales are thriving, sales of previously-owned homes continue to decline. The housing market is divided, with builders benefiting from the inventory shortage, but concerns remain about the impact of rising interest rates on buyer interest.
Pending home sales in the US plummeted by 7.1% in August, a larger decline than expected, as high mortgage rates deterred buyers and sellers. Year over year, pending transactions are down 18.7%. The surge in mortgage rates has diminished the pool of home buyers, causing some to pause and adjust their expectations. Meanwhile, would-be sellers with lower rates are staying put, exacerbating the ongoing inventory shortage. The decline in sales has also contributed to a drop in new home prices. Increased housing inventory and better interest rates are seen as essential to revive the housing market.
Home prices in the US reached a new high in July, marking the sixth consecutive month of increases. The S&P Case-Shiller US National Home Price Index rose 0.6% month over month and 1% over the last 12 months. The 20-city index, measuring existing home prices in the 20 largest US cities, also saw a monthly increase of 0.9%. The robust housing market is driven by inventory shortages and high demand, although some buyers have been deterred by high borrowing costs. The median home price for existing homes rose 1.9% to $406,700 in July. However, higher mortgage rates and limited inventory have impacted demand, leading to a decline in existing home sales.
Existing home sales in the US fell by 0.7% in August, with a 15.3% drop compared to the same time last year, as high mortgage rates and a lack of inventory continue to impact the real estate market. The national median sales price reached $407,100, a nearly 4% increase from a year ago. Limited supply of properties has led to stiff competition, with 72% of properties sold in August on the market for less than a month. Rising mortgage rates, now at 7.18%, are further hindering potential buyers.
Mortgage rates have reached their highest levels in over two decades, creating challenges for homebuyers. The memory of historically low rates just a couple of years ago has left buyers feeling the impact of rising rates even more. Additionally, there is a major shortage of inventory as homeowners are reluctant to sell, leading to rapidly increasing home prices. Combined with high inflation and stagnant wage growth, buyers now have less purchasing power than they did twenty years ago, exacerbating the affordability crisis. The market has become heavily reliant on low interest rates to sustain current home price levels.
KB Home CEO Jeffrey Mezger believes that homebuilders will continue to thrive in the housing market for years to come due to the chronic shortage of existing and resale housing inventory. The lack of inventory has led to increased demand for new homes, resulting in higher prices and strong sales. The scarcity of existing inventory has also prevented a significant decline in home prices, despite challenges to housing affordability caused by rising mortgage rates. Only one housing market, Austin, has successfully returned to pre-pandemic inventory levels, while other markets have experienced significant declines in available housing units for purchase.
Home prices in the United States rose for the fifth consecutive month in June, increasing by 0.9% nationally on a non-seasonally adjusted basis, according to the S&P CoreLogic Case-Shiller index. While the 10-city and 20-city composites showed declines, there were regional differences, with Chicago leading as the best-performing city for the second straight month. The West Coast experienced some of the largest price declines. The housing market continues to face challenges due to high mortgage rates and a limited supply of homes, resulting in increased competition and rising prices. The inventory shortage is expected to persist, as sellers with low mortgage rates are reluctant to sell, and new construction has been slow.
US existing home sales fell to a six-month low in July, reaching the lowest level since January, as homeowners with cheap mortgages refrained from selling due to high costs of new mortgages. This limited inventory helped drive prices higher on a year-over-year basis for the first time since January. Sales declined in the Northeast, Midwest, and South, but rose in the West. The shortage of properties for sale could limit any rebound in the housing market, as mortgage rates have surged to the highest levels in decades. The median existing house price rose 1.9% from a year earlier to $406,700 in July.