Gridlock in the housing market

I have written frequently over the past several months about the challenging market environment for residential real estate. I have generally focused on Central Texas, and sometimes contrasted our situation to conditions across the U.S. Today I received the Winter 2025 issue of Worthwhile magazine from Raymond James, and found this relevant article:

That article from a leading financial management firm argues in favor of prudent management of interest rates to increase demand for housing while allowing time for housing supply to expand in parallel.

Our experience in the Austin metropolitan area over the past 5 years presents a more complex picture, with home prices still lower than they were during the unprecented market run-up in 2022, and prospective buyers concerned about overpaying. In addition, although new home construction lags demand, builders’ prices are often more attractive than nearby resale homes, leading to weak resale demand in large segments of the market.

As the article above suggests, balancing mortgage interest rates and housing supply is vital, and I appreciate this prespective from outside the traditional real estate industry media.

[“Raymond James” in this post refers to Raymond James & Associates, Inc. and Raymond James Financial Services, Inc.]