Currently Reading

Home Prices Probably Won’t Fall, But the Frenzy is Over

Advertisement
Sales

Home Prices Probably Won’t Fall, But the Frenzy is Over

“It’s not like the market is soft. It’s just moving away from that extreme frenzy.”


September 30, 2021
People in a long queue
Photo: stock.Adobe.com

The overheated market that saw home buyers lining around the block for showings, bidding wars, and offers way above the list price is gone as the autumn chill settles in. Although supply is still unable to meet demand, the fall selling season is expected to see more houses listed and fewer buyers looking.

With more folks sidelined, some of the steam has been let out of the market. Prices aren’t rising by as much as competition is down and homes are taking a little longer to sell, giving buyers some breathing room.

In September, the rate of year-over-year growth was halved, to 8.6%, down from its peak of 17.2% in April, according to Realtor.com data. This means the median list price of a home grew half as fast as in the spring. Homes also took a bit longer to sell, at about 43 days. While that’s down 11 days from the same month last year and 22 days from 2019, it’s up 6 days from June.

“Things are settling down. There will still be some multiple offers, but it will be less tense,” says Lawrence Yun, chief economist of the National Association of Realtors. He expects the days of homes receiving 20 to 30 offers are becoming a thing of the past. “And some homes are lingering on the market for a week or two without an offer.”

This fall, buyers may once again be able to include contingencies in their offers, such as requiring home inspections and appraisals, and still win out bidding wars. They may even—gasp—get homes at the list price. All-cash offers could also dip if buyers don’t need to cash out their savings, stocks, and cryptocurrency stashes to stand out from the competition.

“It’s not like the market is soft,” says Yun. “It’s just moving away from that extreme frenzy.”

Read More

Tags

Related Stories

Housing Markets

Full-Year Home Sales on Track for Record High After October Increase

With a greater presence of investors and more job additions, realtors anticipate a record year for the 2021 housing market

Housing Markets

Monthly Existing-Home Sales Increased in October

Sales are on the rise, but housing inventory can’t keep up 

 

Financials

Rising Home Prices Outpace National Household Incomes

High home prices and a drop in median household income are creating a less affordable market for buyers

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.