U.S. Housing Market Tumbling Closer to a Collapse

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The pandemic-induced housing market is swiftly cooling down, as both buyers and sellers are facing growing uncertainty. Indeed, the U.S. housing market is tumbling closer to a collapse – the first in more than a decade.

The once bubbly market was fueled by homebound buyers and record low-interest rates throughout the early months of the pandemic. Realtors and builders were battling to match supply with demand.

Now, at the tail-end of COVID, gloomy market indicators have sent warning signs across the housing industry.

Home sales have plummeted, even as some states have seen slashing prices to help them navigate the topsy-turvy market conditions. July marked a drop of 5.9% in sales compared to June. Despite the decrease in sales, home prices are still at an all-time high, as Q2 saw the average home price close to $440,300.

The tumultuous conditions have left both buyers and sellers uncertain about where they stand.