Why US Housing Is a Tale of Two Markets

The US housing market is divided into two segments: the resale market, which faces challenges due to affordability and low inventory, and the new home market, which benefits from these issues. Builders are leveraging financing strategies to offer lower rates, but the overall market remains stagnant with high interest rates. The future outlook suggests continued pressure on sales volumes, with builders potentially increasing incentives to maintain traffic.

What is one of the main reasons for the decline in the resale market?

• Increased inventory

• Greater affordability challenges

• Lower interest rates

• High demand for resale homes

How are builders attracting buyers in the new home market?

• By increasing home prices

• By limiting the number of homes available

• By reducing home sizes

• By offering lower mortgage rates

What could cause builders to increase their use of sales incentives?

• Decreasing interest rates

• Increasing buyer interest

• Sustained high interest rates

• Rising home prices

What has been a significant challenge for the existing home market?

• High inventory levels

• Elevated interest rates

• Strong consumer confidence

• Low interest rates

What is affecting consumer confidence in the housing market?

• Increasing sales volumes

• Elevated interest rates

• Stable interest rates

• Decreasing home prices