Homes for sale drop to lowest level on record in May
Americans went on a home buying spree during the pandemic taking advantage of historically low mortgage rates. However, now the interest on a home loan is more than double what it was at the end of 2021 and millions of homeowners feel trapped by the ultra-low rate they locked in.
This has led to a dearth of houses being put on the market, new listings were down 25% in May to the third lowest level on record according to Redfin. Furthermore, only 1.4 million homes were for sale last month, the lowest level in the real estate broker’s records.
The lack of supply is forcing those shopping for a new residence to enter bidding wars , which has helped prop up housing prices. In May, Redfin found that 37% of homes sold were purchased for more than their list price.