In terms of the current situation – a heady mix of low inventory, high prices and fierce bidding warfare – there are now signs of the market cooling off, she said.
“Homes take a little longer to sell – it’s still a historic market for sellers – but it seems that property prices have risen so much that many buyers are simply throwing in the towel and choosing to rent instead.”
Ironically, the reported slowdown in the housing market had an unexpected consequence as demand for rental housing soared for both apartments and single-family homes, which reportedly sparked a similar bidding war.
Redfin’s latest report on the biggest condominium price hike since 2012, up 20.3% in a year, was seen as yet another sign of buyers being excluded from the single-family home market, and this is further evidence of this was the lack of available housing in the market.
Dr. Fairweather believed that much more could and should be done to bring the construction industry back to life. She said, “I am very worried. In this country we haven’t built enough houses for everyone who wants one, and it contributes to growing inequality for many people in the United States. “