Over the past few years, the supply of the U.S. real estate market has remained relatively low. Slow growth in the supply of new homes is attributed to reasons such as escalating construction costs, limited land supply, and cumbersome building approval processes.

Meanwhile, population growth and urbanization trends persist, causing sustained high demand for housing. The supply-demand imbalance has resulted in a shortage of real estate market supply. Even with rising mortgage rates, buyers still face limited choices, driving an upward trend in home prices.

Despite the rise in mortgage rates and increased burden on homebuyers, there remains a significant population with housing demand. On one hand, the continuous economic growth in the United States and a relatively healthy job market have led to increased income levels, enabling individuals to afford higher mortgage rates.

On the other hand, real estate investment continues to attract attention as a viable investment avenue. Given the uncertainties in other investment sectors, real estate is considered a relatively stable and reliable investment channel, capturing the interest of a portion of potential homebuyers.

However, despite rising home prices, data shows a historic low in the willingness of buyers to make home purchases. This decline could be attributed to cautious decision-making by buyers facing high mortgage rates, leading them to carefully consider home purchase decisions.

Additionally, due to their own operational pressures, banks and financial institutions have not expanded their lending capacities, limiting the level of loan accessibility for homebuyers. Therefore, despite the increase in home prices, the actual real estate transaction volume is not optimistic.

Looking ahead, the market generally believes that high home prices and high-interest rates will become the new norm in the U.S. real estate market. Insufficient supply and stable demand are two crucial factors supporting the upward trend in home prices. However, the increased burden on buyers due to high home prices may have certain impacts on the healthy development of the market.

Government and relevant authorities should closely monitor changes in the real estate market, take appropriate measures to promote supply-demand balance, protect consumer rights, and ensure the stability and sustainable development of the real estate market.