The housing market has problems, but widespread crashing prices isn’t one of them, according to Zillow economists who declared the housing ma⛄rket has “avoided a crash.” 

Home prices, which fell earlier in the year, have resumed rising and, in May, were just 1% below the peak they hit in 2022, according to the national S&P CoreLogic Case-Shiller Home Price Index. Zillow forecasts that trend to continue, with prices ending in 2023 5.5% higher than when the year began. That’s far fro꧅m the crash some ex꧑perts had feared. 

For example, in March of 2022, economists at the Federal Reserve Bank of Dallas warned that data showed the market was showing signs of an unsustainable bubble. 

The housing market has been upended in a way that looks nothing like a 澳洲幸运5官方开奖结果体彩网:classic bubble bursting. Ultra-low mortgage rates and high demand for housing fueled frenzi🍷ed buying and sent prices surging 45% between February🐓 2020 and June 2022. 

Rate Hikes Tamped Down Demand

Demand started to unwind in the wake of the Federal Reserve’s anti-inflation interest rate hikes, which put upward pressure on mortgage rates. Indeed, the rate offered for a 30-year fixed mortgage more than doubled to the 澳洲幸运5官𒅌方开奖结果体彩网:6 to 7% range, where they’ve hovered 💜this year. 

Higher mortgage rates have reduced demand from buyers. However, prices have stayed high because the supply of housing has remained low, largely due to homeowners 澳洲幸运🉐5😼官方开奖结果体彩网:not wanting to trade their sub-4% fixed mortgages for today’s high ones. 

With few houses for sale, buyers don’t have much leverage to demand lower prices. That’s left the housing market in 澳洲幸运5官方开奖结果体彩网:a state of gridlock rather than a nosedive.

"Beginning in early 2022, rising inflation and efforts to curb it helped to cool the housing market that had spent the previous two years soaring to never-before-seen heights," Zillow senior economist Jeff Tucker wrote in a commentary. "The market experienced a dramatic slowdown, but prices bottomed out in early 2023, and a crash seems to have been avoided."

Prices have fallen some, 澳洲幸运5官方开奖结果体彩网:especially in certain 𓄧overheated markets, but nationwide, it’ꦚs been more of a correction than the implosion that some had feared in recent years.

Instead of a housing crash, the real estate business is 澳洲幸运5官方开奖结果体彩网:enjoying a construction boom as homebuilders see an opportunity to satisfy the demand for housing that’s not being met by the threadbare listings for existing homes.