Housing inventory

More for-sale homes hit the market than at any point this year but a turning point may lie ahead, according to Realtor.com.

Concerns about foreclosure and a crowded market led to an increase in listings at lower price points in the second quarter.

The meager increase suggests the largest boost in inventory possible would likely still leave the backlog of homes on the market at historic lows.

As rising home valuations force first-time home buyers out of the market, expect to see non-owner-occupied loans to increase.

Competition amongst those shopping for homes fell for the second straight month as surging prices pushed consumers to the sidelines and inventory saw modest gains, according to Redfin.

The lack of homes for sale is supporting the record values, unlike what happened in the mid-2000s, analysts say.

Changed borrower psychology and the severe housing inventory shortage dropped lending activity across the board, according to Black Knight.

Home prices grew at a record annual pace in April but indicators of a possible slowdown popped up in May, Redfin noted.

Economic recovery should soar into the summer as vaccination rates climb and restrictions loosen up, but low inventory is likely to limit mortgage activity into the next year, according to Fannie Mae.

The increase won’t hurt the incentive for the average home shopper, but it means those who were looking to “buy the dip” in prices amid the pandemic may have missed their chance.