Has the housing market finally peaked? Experts weigh in

Abstract

Has the U.S. housing market peaked? The real estate market has been hot for a few years now. What kind of a housing market are we currently in? Much of the U.S. has been in a strong sellers' market over the past few years. "Low rates, a bull market, accessible refinancing, and the coronavirus lockdown have prompted people to move, purchase their first homes, buy vacation homes, and invest in properties." Put another way, a seller's market is one positioned in favor of existing homeowners instead of aspiring home buyers. "The decision millennials have collectively made to stray away from rental properties and own real estate has shifted the market completely." What does it mean for the housing market to "Peak"? When experts indicate the market has "Peaked," they mean that the highest growth rates are now behind us and the market is starting to cool off, per Shirshikov. "Once annual home price growth starts trending downward, the market is said to have peaked. Since home prices display strong seasonal peaks and troughs, annual home price growth is used as a barometer for determining market 'hotness,'" notes Nik Shah, CEO of Home.LLC in San Francisco. Will the housing market peak in 2022? Vincent Chan, CEO of real estate development and investment firm Christina, believes that the housing market never truly "Peaks." "It only warms and cools - and sometimes booms - over time, alternating between a buyer's and seller's market. But it always keeps going up," Chan continues. Agents agree the market could be softening Consider the results of a recent HomeLight survey, in which real estate agents were polled about the state of the housing market: 94% of agents believe it's still a seller's market44% say bidding wars are on the decline34% say price reductions are becoming more common33% of agents indicate inventory is rising in their market Of course, the situation buyers will face varies widely from one market to the next.