The U.S. housing market has become unaffordable for many aspiring homeowners, priced out by either high home prices or high mortgage rates.
With mortgage rates at a 23-year high and home prices not falling substantially, affordability hit a 38-year low in September.
New listings rose 2% since the start of September, Redfin reported, offering a glimmer of hope that more homeowners are putting their properties on the market.
Even though the uptick is small, it’s still a positive sign, Chen Zhao, economic research lead at Redfin, told MarketWatch. “Inventory is certainly not getting worse and there are some signs that maybe it could even get a little bit better,” she said. “And over time, people get more used to these high rates.”