In 2020 the combination of low interest rates, extra-ordinary Fed intervention in the mortgage market, the desire for larger homes, and the option of remote work meant many Americans moved. But now with higher rates, fewer people can afford to buy and many homeowners are reluctant to sell and give up their cheap mortgage. The result is a slowing in home sales that sees no signs of recovery. The chart comes from data from the National Association of Realtors and shows existing single family home sales. The slow-down is strongest in regions that saw the most growth, the South. Sales declined there, but are still much higher than they are or were in the Northeast.
Source: National Association of Realtors
Allison Schrager is a senior fellow at the Manhattan Institute. Follow her on Twitter here.
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