Housing Market's Rare Reset

Benzinga

The U.S. housing market is showing early signs of a reset as prices level off, mortgage rates stabilize, and incomes outpace home prices. Rising sales and a surge in withdrawn listings point to strong “shadow demand.”

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00:00It's Benzinga, bringing Wall Street to Main Street

00:02The U.S. housing market is showing early signs of a reset as affordability begins to improve,

00:07according to Compass chief economist Mike Simonson.

00:11Simonson told CNBC that high prices and elevated mortgage rates

00:15sidelined buyers and left sellers struggling.

00:18Sales are now starting to rise as prices level off or decline,

00:21and incomes grow faster than home prices.

00:24Listing withdrawals jumped 47% in June as buyers pulled back,

00:28which Simonson said reflects shadow demand from about 150,000 homeowners

00:33who delayed moves and could return if conditions improve.

00:37Average prices for new single-family homes fell below existing home prices

00:41for the first time in 54 years.

00:43A rare shift analyst said signals deeper structural issues in the housing market.

00:47For all things money, visit Benzinga.com.

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