The growing levels of new home construction and sales are improving expectations for housing availability, according to the latest Housing Trends Report for the second quarter of 2023. As a result, many prospective homebuyers are increasingly optimistic that finding a home will become easier in the coming months.
Improved Expectations for Housing Availability
The report found that 29% of prospective buyers now expect housing availability to ease, a notable improvement compared to 24% in the final quarter of 2022 and 26% in the first quarter of 2023. This marks a positive shift in buyer sentiment, signaling that the increase in new home inventory is starting to have a tangible impact on buyer perceptions.
This improvement in expectations is reflected across the country, with notable increases in several regions. The largest rise in expectations occurred in the Northeast, where the share of buyers expecting an easier home search grew from 28% to 36%. Other regions also saw gains, including the West (27% to 34%), the Midwest (19% to 25%), and the South (24% to 27%).
Perceptions of Homes for Sale
Another key measure of buyer perceptions is whether they are seeing more homes available for sale that meet their desired features and price points. While expectations have improved, the actual availability of homes, according to buyer perceptions, has remained largely unchanged. The share of buyers seeing more homes for sale increased slightly from 30% in late 2022 to 31% in the first half of 2023.
However, these perceptions varied across regions. In the Northeast and Midwest, more buyers reported seeing more homes available, with the Northeast seeing an increase from 26% to 42% and the Midwest from 23% to 28%. On the other hand, in the South and West, the share of buyers seeing more homes for sale remained steady or slightly decreased, from 32% to 31% in the South and 31% to 30% in the West.
Conclusion
The latest data suggests that new home construction is having a positive impact on housing availability expectations. While the actual number of homes for sale has seen only modest increases, buyers are feeling more optimistic about their ability to find a home in the near future. As more new homes enter the market, it’s expected that these perceptions will continue to improve, making the home search easier for many prospective buyers.