T
he housing market's spring awakening is being met with a lukewarm response from homebuyers, as mortgage demand continues to dwindle. Despite an uptick in listings, the average time to sell a home has reached 54 days, its longest stretch since March 2020. This lag is particularly concerning given that supply lags behind January 2019 by 25%. The unaffordability crisis persists, with Redfin's Elijah de la Campa warning that even traditionally affordable areas like Texas and Florida are seeing prices rise again.

    Brown Harris Stevens CEO Bess Freedman shares a similar sentiment, attributing the current mortgage rates as the new normal. She predicts they may hover around 6% for an extended period, potentially dipping slightly lower in the coming months. This rate sensitivity is particularly concerning for first-time homebuyers, who are now entering the market at an older age – nearing their 40s, up from 28 or 29 years ago just a decade ago.

    In light of these challenges, we revisited our list of top residential real estate stocks to buy according to analysts. Our initial screening focused on the largest market-cap residential real estate stocks, which were then shortlisted based on their average upside potential as of February 5. The resulting list of 12 stocks has been arranged in ascending order of their projected growth, offering a snapshot of the most promising opportunities in this sector.