Source: Redfin —
The housing market’s temperature may be starting to drop by a degree or two. Both pending sales and asking prices began to decline or flatten in the four weeks ending May 30. It’s too soon to tell if these are early seasonal changes or the start of the post-pandemic cooldown we predicted earlier this year. The period in question includes the beginning of Memorial Day weekend, which this year marked a return to “normal” life. It may also have marked the beginning of a return to a more “normal” housing market. We should know more as we continue to track the latest data over the next few weeks.
“The housing market was going 100 miles per hour and now it’s down to 80,” said Redfin Chief Economist Daryl Fairweather. “This is not the bursting of a bubble. Rather, it’s a sign that consumers might rather spend their time and money on other things besides housing now that travel, dining and entertainment are resuming in full force.”