Is the Housing Market approaching a Crossroad?

Investors will be watching the markets for signs that the housing market is cooling-there are signs appearing.  Data on existing homes and new homes , have showed evidence of  slumping. Existing home sales slumped in June, for the fifth time in the first six months of the year, while new-home sales fell in June to the weakest pace in eight months.  Those worrying  see trends appearing, these are critical indicators of the overall health of the economy, tied into the housing markets.

Home builders have higher costs of materials and labor.  Mortgage rates have edged higher- these push some buyers to wait and push first time buyers out of the markets.  Home builders are  raising  costs, but demand MAY go down as prices go up.   Existing homes are slowing, even though they offer a better value. There are fewer available homes to purchase as owners stay. Home improvement chains like Home Depot and Lowes are  busy as owners upgrade instead of moving.

The projections seem to be an overall slowing market. Inflation will cause your home to go up, but remember you still need to have demand, a buyer that can qualify for a  mortgage, and be in an upward mobility community.

This may be the beginning of a slowing housing market, however pricing may continue to climb for a year or two especially if interest goes up slowly.  Remember market segments vary from area to area, and city to city due to local demands.

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