There are now nearly 50% more home sellers than buyers as mismatch widens to a record 630,000
Fortune • • business
Key Points:
- In February, there were 46.3% more home sellers than buyers in the U.S., marking the largest gap since 2013 with 629,808 more sellers, indicating a strong buyer’s market since May 2024.
- The Federal Reserve’s aggressive rate hikes raised mortgage rates, cooling the seller’s market that had boomed post-pandemic, while the "lock-in effect" kept many homeowners from selling, tightening supply and driving up prices.
- Rising mortgage rates, exacerbated by geopolitical tensions such as the Iran war and fears of inflation, have made homeownership more expensive, leading to a 10.5% drop in mortgage applications and dampening demand.
- Some Sun Belt cities like Miami, Nashville, and Austin experienced the strongest buyer’s markets due to excess housing supply following pandemic-driven building booms, but affordability issues have reduced buyer interest.
- Home-sale contract cancellations hit a record high in February, with 13.7% of agreements falling through, reflecting buyer caution amid economic uncertainty, inflation concerns, and geopolitical instability.
