Is the housing market slowing down

Since the recession back in 2008, the real estate market has recovered very well. However, the speed of that recovery may be slowing down very soon. Many real estate experts actually think some of the monetary policy decisions will cause a recession by 2020. However, they don’t see the real estate market imploding like it did in 2008.

It’s not uncommon for the real estate market to fluctuate and it has favored the sellers for quite some time. Here’s a look at some of the signs of the housing market slowing down.

More Inventory

Whenever inventory increases, it can be the first sign of things to come. When the real estate market starts to cool off, it usually happens when more inventory becomes available.

Currently, homes throughout the country are selling at a record pace as they are only staying on the market for about one month. If these homes start to stay on the market for two months or longer, it could be an early sign of the housing market slowing down. Usually, this is seen in the condo market first.

Drop in Prices



Another indicator of the housing market slowing down happens when prices start to fall. When prices drop by 10% or more, it’s a sign the market is going south. Right now, this isn’t an issue, but if prices start to drop, even by just a few percentage points, it could show signs of the housing market slowing down.

Changes in Government Policies

If the government makes changes to the tax laws (this happened recently) or the interest rates rise, it could cause the market to slow. The new tax bill in the United States could play a factor in the real estate market over the next few years. With caps on mortgage and SALT (State And Local Tax) deductions, the market could slow, but it’s too soon to tell with this indicator.

In addition, many housing market regulations will be taking effect in several cities across the country. This could also cause issues within the housing market.

While the housing market isn’t expected to hit a significant slowdown through 2018, many believe it will slow down and continue to slow down going into 2019. Prices may continue to rise at a steady pace, but not as fast as they have over the last year or so. Even though the market may be slowing down a bit, experts still expect it to remain steady through the rest of this year.

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