Current State of the U.S. Housing Market

The U.S. housing market is experiencing considerable challenges in 2024, primarily due to high home prices and elevated lending rates, significantly slowing home sales. Although existing home sales saw a minor rise recently, forecasts indicate a temporary boost in new home sales driven by recovery in southern markets affected by hurricanes. However, these positive signs are tempered by a nationwide decrease in demand, as rising interest rates above 7% dampen buyer activity. The competitive landscape is shifting as existing home supply begins to meet pre-pandemic levels, particularly in previously hot markets like Florida and Texas, highlighting the need for builders to offer more incentives to attract buyers.