Although single-family home prices across the country have seen double-digit increases, jumping by some 23% in the last year, the rate of the increase may soon be slowing down.
That, according to industry analysts, is because homebuilders, even while challenged by a lack of workers and supply chain issues, have been working at an unprecedented pace to keep up with demand.
According to the National Association of Realtors, the price increases have been seen across the country and in 94% of all metropolitan markets.
But at the same time, the industry has also seen a 3.3% increase in the number of unsold homes.
“While a full-on celebration might be too soon, prospective homebuyers can breathe a little easier, based on predictions from real estate experts,” notes Forbes.
The publication continues: “Prices are beginning to decelerate in some areas as more inventory has become available for single-family homes.”
In a statement, Lawrence Yun, chief economist with the National Association of Realtors, remarked: “There are signs of more supply reaching the market and some tapering of the demand.”
“The housing market looks to move from ‘super-hot’ to ‘warm’ with markedly slower gains,” Yun continued.
For all of that, realtors have enjoyed a wild ride this year: according to the NAR survey, the average sale price of a single-family home has jumped in the last twelve months from $291,100 to $357,900.
The increases were particularly great in specific growth areas such as Tucson, which saw a 32.6% jump, and Boulder, Colorado, up by 37.7%.
Region-wise, prices saw their biggest increases in the Northeast, at just under 22% and the South, with a 21% jump. The West was close behind, seeing a 20.9% increase since the spring of 2020, followed by the Midwest with a 17.1% jump.
By Garry Boulard
