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The housing market is approaching its seasonal cool after one of the hottest sales seasons to date. In an unusual turn of events, sales remained high into the fall. However, Zillow reveals the cooldown is making its way in as newly pending home sales are down 1.5% compared to last week.
The report attributes the slow to a lack of new inventory. Buyers have exhausted all of the current inventory, leaving very little behind for other prospective homebuyers who are still looking to take advantage of record-low interest rates. Houses are only on the market for a median of 12 days, according to Zillow's report; 17 days faster than 2019.
"The downward slide of inventory that began in late May continued, dropping 1.3% week over week and reaching 37.2% lower than at this time last year," according to the report.
"The last time inventory grew year-over-year was at the end of July 2019."
Buyers will also be facing added obstacles such as the 8% increase in home prices as reported by the Federal Housing Finance Agency's recent Housing Price Index. It was also reported that homebuyers, particularly first-time homebuyers, are finding it more difficult to come up with a down payment on a home as prices continue to rise.
The industry still has reason to celebrate as pending sales are still up 19.3% when compared to the same period in 2019.