Will Home Price Increases Slow Down?

It’s possible that this summer we might see somewhat of a slowdown in the housing market.

One big reason is the rate of vaccinations that’s occurring in the U.S. With more people getting vaccinated, they might be returning to old spending patterns, such as going on vacation or spending on entertainment. That could take some of the focus off homes and the real estate market.

In fact, the number of people who signed a contract to buy a new home went down in May, and there’s been a decline in people applying for mortgages. New home sales dropped almost 6% in April.

For those people who hope to enter the market any time soon, the best they might be able to wish for is that there will be some stability in pricing. Home prices aren’t likely to decline significantly any time soon, but they might even out somewhat.