Housing Market Cools in 2023 Due to High Rates and Tight Inventory
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Home sales and prices dropped sharply in 2023 due to high mortgage rates and lack of inventory. This has hurt related industries like home inspection, moving, storage, and home furnishings.
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The median home price reached $392,100 in November, making homeownership unaffordable for many. Mortgage rates have dipped below 7% but are still high historically.
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Baby boomers are reluctant to sell, forfeiting low mortgage rates. About 25% have rates below 3%. This tightens inventory.
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Demand has fallen for furniture, appliances, electronics, and home improvement as fewer people buy homes or take out loans against home equity.
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Industries tied to housing slumped in 2023. Home inspectors, movers, storage facilities, and retailers have seen business decline by 10-50% year-over-year.