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Although weather conditions were insinuated as potential contributing factors, the essential takeaway is that mortgage rates have remained above 7%, wreaking havoc on sales. Increased inventory, which spiked by 14% year-over-year, has failed to stymie this downward spiral, indicating a stark disconnect between supply and buyer interest.
The Growing Gap Between Supply and Demand
With the uptick in inventory coupled with low sales volume, it is anticipated that sellers will soon need to reduce prices to attract buyers—good news for those patiently waiting to purchase homes. As we enter the spring and summer months, a seasonal trend will likely usher in more listings. However, sellers who refuse to adjust their pricing may find their homes lingering on the market longer than expected.