After the pandemic created chaos in every sector of business throughout America, the housing market looks like it may finally calm down this year.
Since the start of the pandemic the cost of houses has risen by 32% to 39%.
The average cost of a home in the United States currently sits at about $428,700.
Is the housing market finally cooling off? 15% of sellers cut prices in April
Mortgage rates are currently at over 5%. This is expected to slow the activity of purchasing homes for now due to affordability.
Some of the most expensive housing markets in certain areas could see a drop in price. It could be by as much as 15% for the homes in that area.
An entire collapse in the market seems unlikely as supply and lending are expected to still hold up the economy.
At this moment, Freddie Mac reports that the market is about 4 million homes short for what the country actually needs.
This means demand will still outweigh the supply for some time, keeping home prices high.
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