Explaining Today's Low Housing Supply🏡📉

As I have mentioned in my previous newsletters, the housing supply shortfall has supported high home prices notwithstanding high mortgage interest rates. The hike in mortgage rates has not stopped the rise in the median sales price in 2023. While we do see some price drops with respect to homes in the luxury or new construction home category, homes in good locations and in good condition still sell briskly. This should remain the case during the run-up to the holiday season when sellers are normally more willing to negotiate and buyers more anxious to settle. Should buyers hold off in anticipation of a reduction in asking prices or a decline in mortgage interest rates? I will share more data and opinions in my next newsletter (around holidays), but my short answer is “Don’t wait!”