28 Sep Is the housing market finally cooling down?

The housing market is cooling down across the country but not for the reason you would expect; first-time homebuyers have been priced out

According to the National Association of Realtors, home sales fell in August. While the market appears to be cooling off, its in part because price are too high for many buyers.

The median home price in the nation went up to $356,000 in August, a 14.9% increase from 2020.

N.A.R. reports that home sales fell 2% in August compared to July. after two straight months of increases. The report also showed that total sales dipped 1.5% from August 202 from 5.97 million to 5.88 million (statistics from National Association of Realtors)

Lawerence Yun, Chief Economist at N.A.R. states, The dip in sales coincides with rising housing prices nationwide and is causing many buyers to pause their search. Potential buyers are out and about searching but much more measured about their financial limits and simply waiting for more inventory.”

Finally, there are encouraging signs of a market cool-down according to the National Association of Realtors.

1. the affordability crisis is getting a bit better
2. more inventory-this means more affordable homes may be hitting the market.
3. less competition among sellers, homes are on the market a little longer(16 days on average)
4. For the 1st time in 3 years, people are not citing bidding wars as the main reason they couldn’t get the home they wanted.