Is the hot housing market cooling off?

Experts see slight shift in demand for homes

Is the hot housing market cooling off?

Homes continue to be listed and sold at break-neck speeds across the U.S., but the market is finally seeing a slight shift in demand.

Over the last several months, the housing market has been cut-throat, with people offering way more than houses are worth, and sometimes all in cash.

The culprit? Extremely low inventory.

The coronavirus pandemic has had a huge impact on the market, especially since there has been hardly any construction of new homes over the last year. There’s also a large population of baby boomers who aren’t ready to leave their homes, driving prices higher.

Related: Existing US home sales up in June; prices reach new heights

But, finally, there is good news: Jeanette Schneider, president of RE/MAX of Southeastern Michigan, says the situation isn’t as bad as it was a few months ago.

“What I have seen is that the frenzy that I saw -- buyers were crazy for houses -- has cooled a little bit,” Schneider said. “(We’re seeing) five or six offers, not 20 offers.”

However, that’s really the only good news. Schneider says the supply and demand problem isn’t going away anytime soon.

“We don’t have enough homes being built, we don’t have enough existing homes,” Schneider said. “Until that changes ... the rest of this year and even into next year, I don’t see it changing dramatically.”

Some are saying it may take 3-5 years for all of it to settle down.

Schneider says if you’re looking to buy a home, maybe consider looking at neighboring communities, where inventory could be higher.

And, if you’re willing to put in some work, homes that need updating are more readily available.

Related: Millions fear eviction as US housing crisis worsens

About the Author:

Nick joined the Local 4 team in February of 2015. Prior to that he spent 6 years in Sacramento covering a long list of big stories including wildfires and earthquakes. Raised in Sterling Heights, he is no stranger to the deep history and pride Detroit has to offer.