Source: Yahoo! News —
Yahoo Finance reporter Dani Romero joins the Live show with the latest on the U.S. housing market and details on which markets are being most impacted by oversupply.
Video Transcript
SEANA SMITH: Potential homebuyers are getting squeezed by higher mortgage rates, and low inventory levels are keeping prices high in the majority of cities. But Goldman Sachs is out with a new note revealing that of the largest 25 metro areas nationwide, four of them, Austin, Seattle, San Francisco, and Phoenix– you’re looking at them on your screen there– have higher inventory levels in pre-pandemic, and they’re actually dealing with an oversupply. Dani Romero joining us now in studio, and Dani, this is pretty fascinating because we talk about the fact that inventory levels nationwide in most cities are very, very low. What’s driving this? What do you think is factoring into this oversupply in those cities?
DANI ROMERO: Seana, just not a pretty picture for the West Coast and the Southwest region. Like you said, supply is outpacing demand. So for example, if we move over to the West Coast and San Francisco specifically, it’s one of the most expensive cities in America. And home values have drastically declined. Another reason is that the pandemic caused a massive exodus of residents looking for more space, affordable housing in other towns. And you also have to realize that San Francisco is part of Silicon Valley, and the tech industry has been hit by massive tech layoffs. And even though these workers are finding other jobs in other markets, it’s still impacting the region.
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