Real Estate Market: Cooling Off or Heating Up?

Home prices in the US hit another all-time high in July, rising 2.3% from the same month last year, but weakened month to month, signaling a potential slowdown. The cooling off is attributed to rising mortgage rates, which hit 20-year-plus highs in August, and an increase in new listings. However, active inventory remains significantly below pre-pandemic levels. The jump in home prices and higher mortgage rates have made homeownership the least affordable since 1984, with the median household income requiring approximately 38% to cover the monthly payment on a median-priced home.