Interest rates have nearly tripled but housing prices haven't crashed because inventory is critically low. There are only 460,000 homes for sale versus a normal market's 1.2 million, a shortfall of 700,000 homes. This shortage means higher rates alone won't create a buyer's market.
We've seen interest rates nearly triple, and yet we don't see a housing crash like that should blow your mind. Let me give you a comparison. What most experts would agree on as a normal market is 1.2 million homes for sale. So now, with interest rates nearly tripling, we have a little more inventory, but it's only a little more. We have about 460,000 homes for sale now. Still a shortage of. I said shortage of about 700,000 homes to just get to what the experts would agree on is a normal market. That is not a buyer's market. It's not a bad market. It's not a crash, it's just a normal market.
