"2023 Housing Recap: Affordability Plummets as Markets Tighten Nationwide"
The US housing market is currently experiencing a significant decline in home sales, with new home sales down 27% and existing home sales down 40% since January 2022. Despite high mortgage rates and historic unaffordability, homebuilder stocks have surged due to tight supply. Experts predict a slight market loosening in 2024, with an increase in inventory and a reduction in the "lock-in" effect as homeowners may be forced to sell despite higher rates. The market is supported by structural demand due to underbuilding and demographic shifts, but affordability remains a critical issue, with only 15.5% of homes deemed affordable for the average household in 2023.
