The housing market’s taking a beating, and sellers are scrambling to keep up. Nearly 17 percent of ‘em slashed prices in February—highest chunk since 2016—as homes sit longer than a stale loaf. Inventory’s piling up—total stock’s the fattest since December 2007, unsold and finished houses hitting August 2009 levels. New home sales tanked 10.5 percent from January, and folks are sour—80 percent say it’s a rotten time to buy. Rates are sky-high, prices won’t budge, and the market’s limping bad.
Start with those price cuts—16.8 percent of listings got trimmed, up 2 points from last year. Realtor.com’s Danielle Hale calls it “highly unusual seasonal growth”—February’s not the month for this, but here we are. She’s hinting at more softening ahead: “This high share of price reductions could signal further price softening in the coming months as sellers adjust their expectations to market conditions.” South’s up 2.1 points, West 2.5—Denver’s slashing 8 points, Charlotte 6.4, Tucson 6.3—while Northeast barely blinks at 0.2. This ain’t a tweak—it’s a fire sale, and sellers are sweating with 7.22 percent mortgages choking the air.
Inventory’s the real clog—495,000 new homes, a 9-month supply at this pace. Unsold stock’s ballooned—highest since ‘09—and completed homes are stacking up too, back to pre-crash vibes. New sales dove 10.5 percent month-over-month—January’s 550,000 annualized pace shriveled to 492,000. Pending sales? Hit a record low—three years of this slog, and it’s on life support. Houses are lingering like unwanted guests—nobody’s buying, and the pile’s growing dusty.
Folks are tapped out—80 percent hate the market, per Fannie Mae’s Home Purchase Sentiment Index, stuck flat in April at 71.3. Mortgage rates at 7.22 percent last week—up from 6.5 a year ago—aren’t budging, and fewer think they’ll drop soon. Doug Duncan from Fannie Mae nails it: “Recent data showing stickier-than-expected inflation, rising mortgage rates, and continued home price appreciation appear to have given consumers pause regarding the market’s direction.” Confidence ticked up 8 percent year-over-year, but it’s cold comfort—median price at $446,300, up 3.7 percent, keeps the door locked. This isn’t doubt—it’s a brick wall, and buyers are stuck staring.
Homeowners are bleeding too—property taxes spiked 7 percent last year, insurance up 20 percent some spots, repairs climbing with lumber costs, HOA fees creeping. That $446,300 home’s a money pit—add $3,000 yearly tax, $2,000 insurance, $500 HOA, and it’s brutal. FHA delinquency’s past 2008 levels—12 percent serious late—and foreclosures are looming. The dream’s a trap—folks can’t pay what they owe, and the bank’s knocking soon.
Markets are sleepwalking through it—still betting on price climbs while sales rot. Three years of misery—pending sales at all-time lows, new homes down 10.5 percent, inventory at ‘07 peaks. Sellers cut, but 45 of 50 big metros saw reductions climb—Denver’s 8-point leap screams panic. This isn’t complacency—it’s denial, and the crash is whispering while folks plug their ears. Learn from it—smart moves beat blind hope—but this market’s dead ‘til rates or prices crack.
Sources:
https://www.realtor.com/news/trends/home-sellers-slash-prices-february-inventory-report/
https://sinhalaguide.com/more-than-80-of-americans-think-buying-a-house-now-is-a-bad-idea/
https://x.com/RESightsbyME/status/1894766934052217171
https://x.com/StealthQE4/status/1895251201920508406
https://x.com/StealthQE4/status/1895290569209053471