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The basics:
For the four weeks ended June 23rd the typical home sold for slightly less than its asking price. Average home price growth slipped from 4.6% in May to 3.5% in April the slowest growth rate in seven months.
Supply is starting to build which is leading to cooling and
prices. Total active listings are now 35% higher than they were at this time
last year according to realtor.com.
Weitz - As I've said for a long time, I believe the biggest leading indicator by far of where we will see this market go is inventory levels. To see that they have increased 35% from a year ago likley confirms my belief in recent posts that we have reached or are very near a top. I would encourage and expect retirees to start to wake up to this in the near future, and start to try to max out their potential gains of their long term real estate holds as they head into retirement years. This will lead to a significant increase in inventory which coupled with the current interest rate environment (provided it stays relatively high) will lead to significant sluggishness in the market and market depreciation. The time bomb is slowing ticking.
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