The article discusses the current state of the housing market, highlighting increased inventory that provides buyers with more choices and a better negotiating position. However, pending new home sales have declined slightly year-over-year, suggesting that despite favorable conditions for buyers, urgency to make purchases has diminished. The Market Action Index shows a shift from a sellers' to a more balanced market, though concerns remain due to ongoing tariffs affecting construction materials from countries like China, which could impact builders and prices in the long run.
The rapid increase in housing inventory has created a less competitive market for buyers, giving them more options and a better negotiating position.
Inventory levels reflect the highest since before COVID, resulting in declining home-price appreciation and lower purchasing urgency amongst buyers.
Despite still being a sellers' market, the significant drop in the Market Action Index indicates a softening market favorable for buyers.
Ongoing tariffs, particularly on imports from China, have direct implications for homebuilders and could impact construction materials availability and costs.
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