Barron's
The number of homes listed for sale this spring has jumped, but as costs remain prohibitive, buyers aren’t returning with the same enthusiasm. A recession could change that by pushing prices lower in some parts of the U.S.
Nationally, existing-home sales are down 2.2% through March despite a 5.5% gain in the number of properties for sale, says National Association of REALTORS® senior economist Nadia Evangelou. Costs are an issue: “The market is seeing a recovery in listings, but demand remains soft due to affordability constraints,” she says.
The timing could be particularly advantageous for buyers hunting for a second or vacation home. Second-home owners sitting on significant piles of home equity may be more likely to sell in such a scenario.
That doesn’t mean it would be easy, particularly for buyers seeking an entry-level home, for which competition remains relatively high and supply low. “Even with these additional homes for sale, there is still a substantial mismatch between what’s available and what buyers can afford,” says the REALTOR® association’s Evangelou.