As we enter the fall sales season, fundamental changes are underway in many housing markets. According to the most recent existing home sales reports from the National Association of Realtors, after three years of shrinking supplies of homes for sale and rapidly rising home prices, the inventory crisis is waning and prices are leveling off.
One reason for the change in direction is lagging demand. Existing home sales fell below last year’s levels in April, May, June, and July―the heart of the home-buying season. Price hikes generated by shortages of inventory have outpaced incomes and put buying a home beyond the reach of hundreds of thousands of potential first-time [...]