Housing Market Slows: Sales Drop, Prices Rise, Inventory Shrinks

The US housing market has entered a new era of scarcity, with fewer sales, higher home prices, and less inventory. The pandemic accelerated the trend, with record-low mortgage rates and a surge in demand for homes. The lack of available homes has created a "housing economy of 'haves' and 'have-nots'," with those who bought before the market's turning point benefiting from skyrocketing home prices and record-low mortgage rates. Meanwhile, renters are burdened by high rent costs, and would-be buyers are struggling to find affordable homes. The long-term effects of this new housing market could be devastating, particularly for millennials who are delaying typical life milestones and have less wealth than their predecessors.