"The 'lock-in effect' continues to restrict supply, as roughly 80% of current mortgages still have a rate of 6% or lower, making potential sellers hesitant to enter the market."
"Homebuilder confidence has hit a seven-month low in April 2026, with the NAHB/Wells Fargo Housing Market Index falling to 34, reflecting rising costs and economic uncertainty."
"2026 is projected to be the slowest year for single-family construction starts since 2019, as high interest rates and increased material costs make new projects less viable."
"The unsold inventory supply has reached 4.1 months, which is considered near the 'balanced' range of 4-6 months, indicating a shift towards more predictable market patterns."
In 2026, housing inventory growth is decelerating as the market shifts from a rapid recovery phase to a more balanced state. Active inventory remains higher than in 2025, but year-over-year growth has decreased from over 30% to around 10%. Key factors include the mortgage rate 'lock-in' effect, which restricts supply as most current mortgages are at 6% or lower. Additionally, homebuilder confidence has declined, leading to reduced new construction. The market is also normalizing, with inventory levels approaching a balanced range.
Read at Boston Condos For Sale Ford Realty
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