The real estate market in the U.S. has been a red hot sellers’ market for several months, reflected in homes in short supply and high demand, and consistent price increases. In comparison to August 2020, the median price of an existing home increased almost 15% by August of this year.
However, it appears that the demand for homes may be on the decline. From July 2021 to August 2021, sales of homes dipped 2%. In an article published by CNBC.com, it is stated, ‘“The housing sector is clearly settling down,” said Lawrence Yun, chief economist for the Realtors, who called last year’s super surge “an anomaly.’
It would seem that some buyers are deciding to wait for prices to fall or adjust, especially first time home buyers that might be priced out of the market right now. According to the article, first time home buyers usually make up about 40% of the total buyers, but the percentage has fallen to 29%.
Additionally, it is expected that more housing inventory is on the horizon with the eviction moratorium ending. Since the inventory of homes had been down 13% in comparison to August 2020, the additionally supply may help ease the supply issue and cause prices to adjust.
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