Housing Prices May Have Peaked, But Inventory Still Isn't Meeting Demand

According to a recent article in Realtor Magazine, current median home asking prices have increased over 17% in recent months, but when compared to the median asking prices from the same time last year, the increase is closer to 12%. Real estate experts feel this indicates the nation may have hit the peak in housing prices. However, inventory remains tight, with the number of available homes down an incredible 42%.

The pandemic-driven real estate boom has priced many buyers out of the market as their ability to compete for the limited number of available homes is hampered by bidding wars that often elevate the selling price significantly above the asking price. Affordable housing in this kind of market becomes increasingly more scarce, which can present short-term as well as long-term challenges, including continuing pent-up demand for housing in this price range.

This paragraph that describes the situation perfectly:

Regardless, economists are generally predicting an overall slowdown in prices and more moderation rather than any major downfall. Many potential home buyers are still eager to purchase so they can take advantage of low mortgage rates; limited housing inventory will continue to fuel demand; and builders are unable to build fast enough to catch up to buyer demand.

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