The housing market started to slow in May with housing prices rising more slowly than they did in April.
The National Association of Realtors reported that existing home prices are up 3.5% annually, but inventory is down 18.2% from a year ago.
While low mortgage rates have kept demand high and prices steady, inventory has remained low nationwide.
Experts predict that we could see a drop in home prices in 2021 if there is long term economic damage from the pandemic.
“Prolonged economic damage due to the pandemic could cause home prices to drop in 2021. Federal regulators have offered a forbearance option to anyone with a mortgage backed by Freddie Mac, Fannie Mae, or Ginny Mae, preventing jobless homeowners from going into foreclosure. Forecasters predict house prices will start to drop next summer when the forbearance year is about to expire.”