The US housing market's future

This year's real estate market has disappointed many homebuyers. Already at record highs, home prices and mortgage rates have continued to grow.

The property market is declining as recession fears grow. New house sales are down and development has slowed. Existing-home sales are below 2019 levels. 

Mortgage rates skyrocketed in the first half of the year, surprising homebuyers. Freddie Mac reports that 30-year fixed mortgage rates climbed from 3.22 percent in January to 5.81 percent in June

As the market slows, buyers will have less competition and more homes to choose from than in the prior two years.

Rising demand for homes during the past two years led to record low availability, which drove up prices. Inventory saw its first year-over-year turnaround in June.

Price increases have slowed. NAR reports that median home prices for existing homes rose 13.4% year-over-year in June, compared to a 23% increase in June 2021.

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