Sumary of U.S. housing market floats back to earth:
- Real estate signs advertise new homes for sale in multiple new developments in York County, South Carolina, U.S., February 29, 2020. REUTERS/Lucas Jackson/File PhotoNEW YORK, July 22 (Reuters) – The U.S. housing market appears to be straining under the weight of its own pandemic-driven success.
- While for much of the pandemic a rush to suburbia made the home and real estate stars of the recovery, the resulting plunge in inventory and dearth of building supplies have launched home prices beyond the grasp of many potential buyers, particularly at the lower end of the market.
- On Monday, the National Association of Homebuilders reported builder sentiment (USNAHB=ECI) softening, as higher input costs and rising home prices appear to be denting the traffic of potential homebuyers.
- The most recent data shows an annual increase of 14.9% in the Case-Shiller’s 20-city composite home price index, and NAHB’s traffic of potential buyers – while still well above pre-pandemic levels – off 15.6% from November’s apex.