Still, that drop in prices will do very little to improve the affordability crisis brought on by rising mortgage rates. 'Tighter monetary policy from the Federal Reserve and persistently elevated construction costs have brought on a housing recession,' said NAHB Chief Economist Robert Dietz in the August report.
Builders reported lower sales and weaker buyer traffic. Homebuilder sentiment in the single-family market fell into negative territory in August for the first time since a brief dip at the start of the pandemic, according to the National Association of Home Builders.
Housing starts for single-family homes dropped 18.5% in July compared with July 2021, according to the U.S. Inventory is taking a hit nationally because homebuilders are slowing production due to fewer potential buyers touring their models. 'This is a very traditional post Labor Day inventory bump and seeing in a week or so how the market absorbs the new inventory is going to be very telling,' he said. He now calls the market 'bloated.' As a comparison, just 65 homes were listed for sale in March. He focuses on the competitive Capitol Hill neighborhood, and he said he saw listings jump by 20 to 171 just after Labor Day. Paul Legere is a buyer's agent with Joel Nelson Group in Washington, D.C. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
