FAST FIVE: US Housing Inventory Grows At Record Pace As Buyers Slow Down; Shiller Warns Of 'Heightened Risks'
The sharp slowdown in activity suggests that the Federal Reserve's efforts to curb inflation through rate hikes have had a dramatic effect on the pandemic housing frenzy, as higher borrowing costs have sidelined many would-be buyers.
“The two years of a market heavily tipped in favor of sellers appears to be in the rearview mirror.” That said, inventories are still lower than they were pre-pandemic, while the median list price remained 17% higher in July than a year earlier.
The nationwide median list price in July was $449,000, up 17% from a year earlier and close to the all-time high reached in June.
An abrupt halt to the pandemic housing boom has left builders that started construction months ago scrambling to adapt.
“The Chicago Mercantile Exchange has a futures market for home prices-That's in backwardation now; [home] prices are expected to fall by something a little over 10% by 2024 or 2025.