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Housing Market Dynamics: Supply Challenges and Demand Insights

December 27, 2024 - 18:31

Housing Market Dynamics: Supply Challenges and Demand Insights

As we approach 2025, the housing market is navigating a complex landscape characterized by a supply shortage and heightened demand. Jason Waugh, President of Coldwell Banker Affiliates, recently shared valuable insights into these dynamics. He noted that there has been notable growth in both pending and existing home sales, signaling a robust market despite ongoing challenges.

Waugh emphasizes that the core issue lies in supply rather than demand. He advocates for "more stability" in interest rates, suggesting that a reduction in volatility could lead to an adaptation in the market. This shift would likely result in increased inventory and enhanced consumer confidence, essential factors for a healthier housing market.

Interestingly, the luxury segment is currently thriving, with homes priced at $1 million or more seeing a remarkable 25% year-over-year increase in November. Waugh points out that this demographic is less affected by fluctuations in interest rates, further illustrating the unique dynamics at play in the current housing landscape.


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