Despite a rise in housing inventory compared to last year, buyer enthusiasm is subdued due to high borrowing costs and affordability issues, according to Realtor.com economist Anthony Smith. Major urban areas are still leading in home-price appreciation, with New York seeing a significant 7.95% increase. While cities in the Midwest and Northeast outperform others, areas like Tampa and Dallas have witnessed declines. The upcoming Case-Shiller index will reflect the impact of current mortgage rates, and existing home sales show a slight uptick, yet unsold inventory has increased significantly, suggesting potential softening in market conditions.
Higher borrowing costs and affordability challenges are dampening homebuyer enthusiasm, according to Realtor.com economist Anthony Smith, as housing activity is expected to remain sluggish.
Despite an increase in market listings, high borrowing costs are consistent barriers to affordability, prolonging a slower-than-usual housing market in the spring.
Major cities continue to drive home-price growth, with New York leading at a 7.95% rise. Midwestern and Northeastern cities are performing better overall.
As unsold inventory rises by over 20% and sales remain stable, conditions indicate a potential softening in price appreciation within the housing market.
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