As for the current situation – a heady mix of low stocks, high prices and bitter wars between trading – there are now signs of a cooling market, she said.
“Homes are starting to take a little longer to sell – by historical standards, this is still a seller’s market – but it seems that house prices have gone up so much that many buyers just throw that towel away and decide to rent instead.”
Ironically, the alleged cooling of the housing market had unexpected consequences as demand for rent soared for both apartments and single-family homes, sparking a similar bidding war, according to reports.
Redfin’s recent report of the biggest rise in apartment prices since 2012, rising 20.3% year-over-year, was taken as another sign that buyers are losing prices on single-family homes, and that this was further evidence that that the lack of housing in the market is available.
Dr. Fairweather believes that much more can and should be done to bring the construction sector back to life. She said, “I am very worried. In this country, we have not built enough houses for those who want to have them, and it contributes to rising inequality for many people in the United States… “