Economist Mike Walden: Is the Housing Market Cooling?

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?

  1. Home ownership rate has rebounded since the Great Recession, as have home prices, which have now set a new high
  2. But in recent months both buying and home price gains have slowed
  3. Several factors
  4. New tax law reduced tax benefits of homeowning
  5. Mortgage interest rates have risen
  6. And – remembering the housing crash – still some reluctance among buyers
  7. Don’t think this means the housing market is ready to crash
  8. No problems with people paying their mortgages
  9. 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.