It’s What’s New that Moves the Market
First American’s Odeta Kushi gives her insight on what moves in the housing market. Backed by data, she urges that the relationship between new listings and sales depend on the mortgage rate lock-in effect and life events of the buyers. She urges for industry professionals to distinguish between active listings and new listings when analyzing the market.
“Across the top 75 U.S. markets, the relationship between new listings and closed sales is statistically significant and positive. More new supply coming online is associated with more sales taking place. However, the link between active inventory and sales is much weaker, reinforcing the idea that it’s the flow of new homes into the market, not just the level of inventory, that drives sales activity.”
