“The S&P CoreLogic Case Shiller Home Price Index continues to remain strong due to a scarcity of homes for sale,” A&D Mortgage CEO Max Slyusarchuk added. “However, homebuilder confidence is strong enough to continue building homes, but we hear in some markets that homebuilders still need to offer concessions, such as points buydowns, to secure many home purchases.”
Despite the increase in available homes, the market is experiencing regional variations in inventory and demand. Markets with significant supply gains, such as Florida, Texas, and the Southeast, are seeing cooling demand and slower home price growth.
According to CoreLogic data, New Orleans, Austin, San Antonio, Cape Coral, and North Port are the top five markets with the coolest trends, often due to rising insurance costs and maintenance concerns.
Meanwhile, markets in the Northeast and West with strong home price gains continue to struggle with inventory shortages but maintain high demand. The San Francisco Bay Area, for instance, is seeing home sales gains compared to last year.
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