June 23, 2021
Real Estate

High prices and scarce supply douse burning US housing market, Real Estate News, ET RealEstate

WASHINGTON: The boom in US real estate was one of the more unusual side effects of the Covid-19 pandemic, but government and industry data released in recent days show sales are on a downward slope, a consequence of the economy’s recovery and a shortage of homes to buy.

Sales of new and existing homes began falling in April, as prices continued climbing despite homebuilders rushing to keep up with demand, data said.

While the market may stabilize in the months to come, analysts believe the real estate sector is set for a pause.

“The story here probably is a combination of fading Covid-induced demand for homes outside cities and/or bigger homes in the suburbs, coupled with the impact of higher mortgage rates and tighter lending standards,” Ian Shepherdson of Pantheon Macroeconomics said.

The latest evidence of the cooling came on Tuesday, when the Commerce Department reported new home…

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