Bluebid Buzz: April 20
As a benefit to the homeowners and homebuyers using our platform, I share a regular summary of housing market news and data driving our decision-making here at Bluebid Homes. We call it the Bluebid Buzz.
Disclaimer: Views expressed here are my own and not the views of my coworkers or anyone else. I am not a financial advisor, investment advisor, or housing expert. I’m just a guy who cares deeply about saving the American Dream of homeownership.
Here's the buzz for the week of April 20, 2023…
This week saw inventory shortages continuing to impact all corners of the housing market. In many areas, such as New York City and its surrounding communities, the situation is so dire it has been likened to a 'miserable game of chicken.' Homebuyers are increasingly sensitive to weekly mortgage rate moves, and supply shortages are at least partly to blame for declining headcount in the real estate agent community.
An opinion piece from Bloomberg dissects what it calls the excessive caution of the homebuilding industry. The author predicts the housing crisis will only get worse in the coming years, as both new homes and existing homes suffer shortages.
Curbed refers to the current market in New York City and surrounding communities as a miserable 'game of chicken,' as the flurry of new listings that typically come on the market in spring have not materialized in 2023.
Bankrate shares that while pricing in the US housing market is finally slowing, they expect any correction to be a modest one given depleted inventory.
CNBC notes today's homebuyers appear to be increasingly sensitive to weekly moves in mortgage rates, and that was certainly the case this week. As rates ticked slightly higher, mortgage applications to purchase a home dropped 10% from the previous week.
Business Insider posted an in-depth article about the impact of current market conditions on the agent community's sentiment and headcount. Shortages continue to inflict pain, as nationwide inventory was 43.2% lower in March compared with typical levels from 2017 to 2019.
While an increasingly popular opinion is that the housing gets gets worse before it gets better, I do not believe that will be the case in the medium-term. Our platform has already brought significant, differentiated supply to market in Massachusetts, and we are developing a playbook for 50 states. Our team will be announcing some major milestones and new features in the coming weeks, and we thank our community for its continued support.
Have a great week.