Multiple measures of housing market activity show it may be slowing down. Of course, a few months don’t necessarily make a trend. But are there now some headwinds facing home builders and sellers?
- Home ownership rate has rebounded since the Great Recession, as have home prices, which have now set a new high
- But in recent months both buying and home price gains have slowed
- Several factors
- New tax law reduced tax benefits of homeowning
- Mortgage interest rates have risen
- And – remembering the housing crash – still some reluctance among buyers
- Don’t think this means the housing market is ready to crash
- No problems with people paying their mortgages
- Big price gains got ahead of the market
The Economic Perspective is an NC State Extension program from the Department of Agricultural and Resource Economics.