Part 5/7:
While the broader economic concerns loom large, the housing market is similarly showing signs of distress. Reports indicate that home sales fell 4.9% in January, with persistently high mortgage rates pushing many potential buyers out of the market. As demand wanes, sellers may be forced to reduce prices significantly to attract buyers.
Key figures in the industry, like the National Association of Realtors' Chief Economist Lawrence Yun, attribute the housing market slowdown to high prices and stubbornly high mortgage rates, leading to continued affordability issues. Despite some experts forecasting that sales will increase in 2025, the basis for such optimism appears tenuous given the current state of income stagnation amid inflation.