Housing: Bidding wars, higher prices & even higher mortgage rates
08/23/2023 22:53
New home sales beat expectations in July, reaching 714,000. National Association of Realtors Deputy Chief Economist and Vice President of Research Jessica Lautz joins Yahoo Finance Live to discuss some of the challenges impacting the housing market. “We have a lot of strong demand for housing,” but interest rates keep rising and “that is very hard for consumers today,” Lautz says. “The second factor that is really impacting consumers is inventory…. It is very hard to find a home today if a shopper is out there, and so they are turning to new homes.” Lautz notes that “there is a lot of demand” in the housing market right now. “For every home that’s out there, we’re actually seeing 35 percent are moving more than the asking price so I would say that there’s a bidding war for those homes that are out there,” Lautz says. Even though existing-home sales are down, the prices are increasing “because of that limited inventory,” Lautz explains.
New home sales beat expectations in July, reaching 714,000. National Association of Realtors Deputy Chief Economist and Vice President of Research Jessica Lautz joins Yahoo Finance Live to discuss some of the challenges impacting the housing market.
“We have a lot of strong demand for housing,” but interest rates keep rising and “that is very hard for consumers today,” Lautz says. “The second factor that is really impacting consumers is inventory…. It is very hard to find a home today if a shopper is out there, and so they are turning to new homes.”
Lautz notes that “there is a lot of demand” in the housing market right now. “For every home that’s out there, we’re actually seeing 35 percent are moving more than the asking price so I would say that there’s a bidding war for those homes that are out there,” Lautz says. Even though existing-home sales are down, the prices are increasing “because of that limited inventory,” Lautz explains.