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3 signs that the housing market is starting to get better after a historic affordability crisis
The sky-high prices, rapid sales, and frenetic bidding wars that defined the housing crisis are reversing. The market might just be starting to heal.
By Ben Winck
Prospective homebuyers may soon be able to breathe a sigh of relief. For the first time in five months, the housing market is cooling off.
What began as a buying spree in 2020 morphed into an affordability crisis in 2021 as demand for US homes handily outpaced the national supply. Bidding wars drove prices higher at record pace, and Americans began to back away from the red-hot market in June.
New data suggests it was wise to wait. Various indicators from real estate website Redfin signal the market hit its peak in July before reversing course. If the latest trends hold, houses could get more affordable for the first time in 2021.
Here are three (early) signs pointing to normalization in the US housing market.
1. Selling prices are reversing their climb
The median price of a previously owned home fell 0.2% in the four weeks ending August 1, according to data published by Redfin on Friday. It’s a small change, but in the right direction. The…
