The post-pandemic real estate boom could be reaching its climax.
New data from Realtor.com shows that price growth in the housing market, which has been soaring for almost 10 months, is starting to slow, hitting its lowest level in seven weeks. Year-over-year increases in home prices were actually down last week, marking a slowdown in a 39-week–long trend.
It’s hardly the “bursting bubble” that some bears fear. The housing market is still incredibly strong, but this could be a sign that the days of basically setting your price when selling a home could be about to end.
“This week the housing market took a very tiny step in a buyer-friendly direction,” said Danielle Hale, chief economist at Realtor.com. “It is still solidly a seller’s market, with homes selling 28 days faster year over year for the week ending May 8. However, homebuying opportunities could be on the horizon.”
The median listing price of homes was up 15.2% year over year for the week of May 8, down 0.2% from the previous week’s increase. That said, median listing prices for May are still on pace to exceed April’s record high of $375,000.
More houses are finally starting to come on the market. Sellers added 5% more listings than at this time last year. They’re still not lasting a long time, though. Current time on market is 28 days faster than last year.
That’s not surprising, as the housing market slowed in the early days of the pandemic. By September and October, however, it heated up quickly and has rarely slowed down since.
While homes under $350,000 are going especially fast, the high-end market has been especially healthy this year. And existing homes are proving attractive to buyers who don’t want to deal with the headaches and potential delays brought on by the ongoing lumber shortage.
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