The hot housing market slowed in August as house prices continue to discourage buyers. Existing sales fell 2.0% last month and housing supply remains tight, down 13.4% from a year ago, according to National Association of Realtors data released Wednesday.
Extreme competition has also pushed many potential buyers out of the market, with median home prices rising 14.9% from a year ago. The data also showed the smallest share of first-time buyers in over 2.5 years, reports Reuters, and homes continue to sell after just 17 days on the market.
Single-family home sales fell 1.9% and condo / co-op sales fell 2.8%. Reuters noted that this drop in sales coincides with the recent change in sentiment among home buyers. Home resales fell 1.5% from the previous year; however, sales are up 16% this year from the same period in 2020 and remain above pre-pandemic levels.
When it comes to home price growth, forecast models show continued, but slower growth, Fortune reports. The lower projection is from CoreLogic, showing 2.7% appreciation over the next 12 months while John Burns Real Estate Consulting and Freddie Mac project 4% and 5.3% home price growth in 2022. .
Despite the forecast for continued growth, the housing market is expected to stabilize.
You must beware: Obsolete buying tips that are no longer true
To explore: How student debt discourages home buying and what to do about it
“The recent moderation in existing home sales reflects a certain easing of the buying frenzy that continued into early 2021,” said Mark Vitner, senior economist at Wells Fargo in Charlotte, North Carolina. “The frantic race for space has caused prices to skyrocket. We continue to expect the housing market to regain its equilibrium over the next two years. “
More from GOBankingTaux
Last updated: September 23, 2021