Homebuyer Optimism Increases as Residential Construction Accelerates

An uptick in residential construction is leading to more optimism among prospective buyers, who have been sidelined by soaring prices, dwindling inventory, and fast-rising mortgage rates throughout the first half of the year. According to the latest Housing Trends Report by NAHB Eye on Housing, 29% of prospective buyers in the second quarter of 2023 are anticipating housing availability to ease up, an improvement over the 24% and 26% who expressed similar expectations in the final quarter of 2022 and the first quarter of 2023, respectively.

Despite greater buyer confidence, the share seeing more homes available for sale in their respective markets rose just 1% from 30% in the final quarter of 2022 to 31% in the first two quarters of 2023.

Housing availability expectations have improved all around the country. Between the final quarter of 2022 and the second quarter of 2023, the share of buyers expecting an easier home search ahead rose most significantly in the Northeast (28% to 36%), followed by the West (27% to 34%), the Midwest (19% to 25%), and the South (24% to 27%).

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