Housing crisis continues to worsen

Green Escrow | New construction, housing

The American housing crisis continues -and worsens – as the country is short between 2.3 million and 6.5 million housing units according to realtor.com. The National Association of Home Builders says that 1.1 million homes a year must be built to cut into the deficit.

Unfortunately, a lack of skilled construction labor, a shortage of available lots, problems in securing limber and building materials and the difficulties of navigating local laws and zoning requirements are all contributing to the problem.

One positive for the housing market is that close to 1 million apartments are under construction.

Mortgage rates up, inventory falling

Green Escrow | Real Estate News

The news continues to be tough in the housing market. Mortgage rates climbed to 6.73 % for a 30-year fixed mortgage while hoe prices increased by 6.3%.

New listings have declined for 35 weeks straight, down 26% compared with 2022. And houses on the market continue to sit for up to 18 days longer than last year.

More on the market, 2023

Market News

Spring is here (almost) and the housing market is expected to … who knows? Mortgage rates are high and, based on the comments from the Federal Reserve on raising interest rates, expected to go higher.

Sellers have seen prices moderate a bit and and many have been forced to decrease asking prices. Houses are sitting on the market much longer as well.

Most analysts expect to see an upturn in the market in the coming months but nowhere near the craziness of the pandemic years or even the pre-pandemic times.