Bluebid Buzz: March 16
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 March 16, 2023…
This week saw bank turmoil, falling mortgage rates, improving builder sentiment, and tremendous uncertainty in the market – yet the housing supply shortage continues to claim the spotlight across many of the publications we track.
Bankrate reports on mortgage rates tumbling in the wake of Silicon Valley Bank’s collapse. The company says it’s possible that renewed financial uncertainty will be favorable for borrowers.
CNBC says builders continue to report strong pent-up demand, and a monthly gauge of builder confidence in the market for newly built single-family homes rose in March - the third straight monthly increase in builder sentiment.
Inflation dropped to 6% this week, but housing costs remain elevated. According to the Bureau of Labor Statistics, the index for shelter accounts for more than 70% of the annual increase.
The St. Louis Fed tracks housing inventory and counts fewer than 578,000 active listings in the United States as of March 2. This equates to approximately 0.4% of homes!
Realtor.com also observes that inventory remains low. The supply imbalance is impacting residential real estate across the country, and inventory is down 30% from levels seen five years ago.
Time writes that in many U.S. markets, would-be buyers are facing a big problem: there’s just nothing to buy. Given the uncertainty of the times, it makes sense to see owners balking at publicly listing their homes for sale. Bluebid offers homeowners a new path, and we expect our platform will unlock supply in a big way this spring and summer. Stay tuned for exciting product news in the weeks ahead.
Have a great week.