Sharp Decrease in Demand Driving Housing Market Cooldown
A sharp decrease in demand between September 2021 to September 2022 was reported, driving the housing market cooldown.
According to M Report, “the most recent round of rate increases has continued to cause a shift in supply-demand fundamentals by impacting demand and creating a flat price growth environment,” said Jeremy Sicklick, Co-Founder and CEO of HouseCanary. “Compared to the rate increases in the spring, the market is starting at a different baseline with no momentum to subsequently absorb the slowing of the market volume and price growth. Additionally, the market has seen a 51% increase in listing removals and an 83.2% increase in the volume of price drops over the last year, indicating that declining demand has driven sellers to either reduce their listing prices or remove their homes from the market entirely.”
