Housing Data Suggests a ‘Freeze’ in the Real Estate Market

Source: Globest — 

Last week’s released housing data reflects a freeze in the real estate market, according to Patrick Carroll, CEO and founder, CARROLL Company.

November’s U.S. housing starts data is continuing to decline and signals how 2022’s surge in mortgage rates has suppressed buyer demand – along with increases in building materials and labor construction shortages, Carroll tells GlobeSt.com.

“The housing market will likely remain weak in the start of 2023,” he said. “We are also expecting the Fed to continue to raise interest rates and mortgage rates will stay at a new elevated level home buyers will have to adjust to.

“While single-family home building continues to fall, there are plenty of opportunities in multifamily as this sector has shown to be resilient this past year and higher mortgage rates will keep renters on the sidelines.”