The article discusses the current slowdown in home sales, which are tracking at 4.26 million compared to a long-run average of 5.4 million. Homeowners are less inclined to sell due to low mortgage rates and age, leading to a shortage in available homes. New-home sales have also dropped to about 676,000, partly due to increased construction costs and regulatory challenges. Overall, the housing market mirrors levels seen in the early 1980s, highlighting the importance of considering total household growth when analyzing sales data.
"Fleming attributes the slowdown primarily to homeowners staying put. These people are either locked into their current mortgage rates, older and choosing to stay in their homes, or both."
"Builders face less competition due to the chronic housing shortage made worse by the seller's strike, but their construction costs have increased significantly."
"Fleming said this puts today's housing market at sales levels similar to the early 1980s, apart from the brief dip in 2010 that followed the expiration of a first-time homebuyer tax credit."
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