The heat in the housing market slowed in August as home prices continue to discourage buyers. Existing sales fell 2.0% last month and housing supply remains tight, down 13.4% from a year ago, according to National Association of Realtors data released Wednesday.
See: 20 Home Renovations That Will Damage Your Home’s Value
Find: The cost of owning a 3 bedroom house in each state
Extreme competition has also pushed many potential buyers out of the market, as median home prices are up 14.9% from a year ago. The data also showed the smallest share of first-time buyers in over 2.5 years, reports Reuters, and homes continue to sell after just 17 days on the market.
Single-family home sales fell 1.9% and condominium / co-op sales fell 2.8%. Reuters noted that this drop in sales coincides with the recent change in sentiment among homebuyers. Home resales fell 1.5% from the previous year; however, sales are up 16% this year compared to the same period in 2020 and remain above pre-pandemic levels.
Related: 10 Signs You Shouldn’t Buy A Home Now
When it comes to home price growth, forecast models show continued, but slower growth, Fortune reports. The lower projection is from CoreLogic, showing 2.7% appreciation over the next 12 months while John Burns Real Estate Consulting and Freddie Mac project 4% and 5.3% home price growth in 2022. .
Despite the forecast for continued growth, the housing market is expected to stabilize.
Warning: obsolete buying tips that are no longer valid
Explore: How Student Debt Discourages Home Buyers and What to Do About It
“The recent moderation in existing home sales reflects a certain easing of the buying frenzy that continued into early 2021,” said Mark Vitner, senior economist at Wells Fargo in Charlotte, North Carolina. “The frantic race for space has caused prices to skyrocket. We continue to expect the housing market to regain its equilibrium over the next two years. “
More from GOBankingTaux
Last updated: September 23, 2021
This article originally appeared on GOBankingRates.com: As Home Sales Slow, So Do Prices