The market could also melt as demand from frustrated buyers is met by homebuilders, who have “historically created first-time homebuyers and move-up opportunities,” said Mr Teta of Atom.
The lack of existing home inventory seems to be driving buyers into newly built homes, which is a smaller market where sales have picked up better. New single-family home sales jumped nearly 10 percent in March from the previous month, According to the Census Bureau.
The National Association of Realtors expects new home sales to increase 4.5 percent this year and 12 percent in 2024. It expects existing home sales to fall about 9 percent this year and then pick up again in 2024.
There are always reasons for reluctant homeowners to sell, such as job transfers, downsizing, or divorces, said Eliana Abella, executive director of sales for The Abella Group, a Miami real estate brokerage.
“If you plan to stay in your home for longer than five years,” she said of current interest rates, “6 percent won’t kill you.”
However, many homeowners are content to wait.
Eileen Goldman, a 72-year-old retired attorney in Naples, Florida, is looking to slim down. She and her husband, Sam Savage, have lived in their two-story home since 2004, but they know that stairs will only get more difficult as they get older.
“We both work, and that’s not a problem,” Goldman said, adding, “We want to act now before it gets too difficult.”
But they are in no hurry. She said, “We don’t have to do that,” because they watch local prices. “We’ll also be fine staying.”
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