U.S. housing market floats back to earth
NEW YORK (Reuters) - The U.S. housing market appears to be straining under the weight of its own pandemic-driven success. Recent data shows the sector is returning from the stratosphere and coming back to pre-COVID levels, as evidenced by a slew of data released this week.
While for much of the pandemic a rush to suburbia made the home and real estate stars of the recovery, the resulting plunge in inventory and dearth of building supplies have launched home prices beyond the grasp of many potential buyers, particularly at the lower end of the market.
“The housing market isn’t caving just yet,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. “Have we reached a peak? That’s a possibility, but worst case scenario, I see a leveling off.”
The best news of the week for investors was delivered on Thursday by the National Association of Realtors (NAR), which reported that sales of previously owned homes rose 1.4% to 5.86 million units in June at a seasonally adjusted annualized rate, although the rebound was weaker than expected. …
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