The housing market has been on a record-breaking surge for the past year, with house prices skyrocketing to unprecedented levels. However, experts predict that this surge is expected to slow down soon, bringing some relief to homebuyers.
The pandemic has played a significant role in the housing market’s surge, with low-interest rates and a shortage of homes for sale driving up prices. Many people have also been looking for larger homes with more space as they spend more time at home due to remote work and social distancing measures.
According to the National Association of Realtors, the median existing-home price in the United States rose by 23.6% in May 2021 compared to the same month in 2020. This surge has made it challenging for first-time homebuyers to enter the market, with many struggling to afford the high prices.
However, experts predict that the housing market’s surge is expected to slow down soon, bringing some relief to homebuyers. One reason for this is that interest rates are expected to rise, making it more expensive to borrow money for a mortgage. This could lead to a decrease in demand for homes, which could, in turn, lead to a decrease in prices.
Another reason for the expected slowdown is that more homes are expected to come on the market. Many homeowners have been hesitant to sell their homes during the pandemic, but as vaccination rates increase and the economy improves, more people may be willing to put their homes up for sale.
Additionally, the construction of new homes is expected to increase, which could help alleviate the shortage of homes for sale. The National Association of Home Builders predicts that single-family home construction will increase by 9% in 2021.
While the expected slowdown in the housing market may be good news for homebuyers, it’s important to note that prices are still expected to remain high. The housing market is notoriously difficult to predict, and there are many factors that could impact prices in the future.
In conclusion, the record-breaking surge in house prices is expected to slow down soon, bringing some relief to homebuyers. However, prices are still expected to remain high, and the housing market is notoriously difficult to predict. It’s essential to work with a trusted real estate agent and financial advisor to navigate the market and make informed decisions.