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The rate of overall housing starts slowed in 2022 while completions climbed. In 2022, roughly 1 million single-family homes were started, which is 10.6% fewer than in 2021, though still more than in any other single year back to 2012.
“While that brings greater supply to the market, most of it will be used for rentals and won’t address ongoing affordability challenges in the for-sale space,” said Jones."
The
key is the cost of materials for builders and they have to pass that
cost over to the home buyer. Then you add the elevated interest rates
affordability will be an issue.
Lastly
the economy is questionable and could go either way I think there will
be jobs but less of them. Inflation may eat up most of the disposable
income.
The
good news is people will always need a place to live which is where I
come in. I get my clients the best income real estate available in the
Cleveland Metro area. Doing 100's of deals we understand what clients
want and get success from.
" “As inflation and mortgage rates likely soften later this year, buyers are likely to return to the market and be in search of an affordable home, and the ongoing housing supply shortage will only continue to put pressure on the market,” said Danielle Hale, Realtor.com’s chief economist."
I do
not see mortgage rates softening this year at all and I think inflation
is the reason for the home prices. Let's face it if you are not building
homes the market becomes more of a commodity than a market. If they
want affordable housing, cut inflation and everything else will fall
into place.
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Thank you