The housing market has a pattern and it's fairly easy to spot. It follows the seasons. Things start heating up in the spring and early summer, then begin to cool off beginning around September. Fall and winter are typically slower, with fewer homes to buy and fewer buyers active in the market. Of course, just like the seasons, sometimes things veer off track and we'll have an unusually hot winter market or a cool summer, with slower sales and less competition. Generally speaking, though, the housing market has its pattern.
This year looks to be no different. In fact, according to one report, the market is already showing signs of a late-summer slowdown. For one, price increases have slowed. From June to July, the typical home climbed 0.9 percent, after rising 1.4 percent the previous two months. Homes are also spending a little longer on the market, with the typical home going under contract two days later than it did in April and May.
A combination of lower prices and less competition is good news for home buyers looking to make a move in the months ahead. But while there are encouraging signs, buyers still need to be prepared. Active inventory remains 44 percent below 2019 levels.
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