Recent data releases all point to an economy that remains more resilient than many feared, and a housing market that is showing signs of modest improvement. New home sales posted a solid gain in January and listing activity picked up in early February.
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2022 was a turbulent year for the US housing market, as inflation, soaring interest rates, and elevated sales prices combined to cause a slowdown nationwide.
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The U.S. housing market is undergoing a major shift, and affordability continues to be an obstacle for buyers and sellers. Mortgage rates have doubled since March, and home prices remain elevated due to a limited supply of homes, although price gains are slowing at a quickening pace.
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Summer 2022 has been a season of change for the U.S. real estate market. Inflation, higher interest rates, and fears of potential recession have taken a toll on buyers and sellers this summer, leading many people to stay on the sidelines to see what will happen with the market. But some experts, including NAR Chief Economist Lawrence Yun, believe the worst of inflation may be over.
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Rising inflation, soaring home prices, and increased mortgage interest rates have combined to cause a slowdown in the U.S. housing market.
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