Spring Housing Market Sees High Demand Despite Seller Hesitation

Early-stage demand for homebuying has increased as mortgage rates and home prices continue to decline, but a lack of new listings is holding back sales. Pending sales dropped 19% year over year nationwide in the four weeks ending March 26, the biggest decline in about two months. New listings of homes for sale declined 22%, one of the biggest drops since the start of the pandemic, as homeowners are reluctant to sell because they don’t want to give up a low mortgage rate. Home prices dropped in more than half of the 50 most populous U.S. metros, with the biggest drop in Austin, TX (-15.2% YoY), while sale prices increased most in Milwaukee, where they rose 14.1% year over year.