In some of the nation’s hottest housing markets, housing prices climbed by more than 30% this year. While prices are continuing to rise across the country, there are signs that steep price jumps are moderating.

Also, the number of homes with price cuts has more than doubled compared to a low set in February. And homes also are taking slightly longer to sell, increasing from a low in June of 37 days to 45 days in October, realtor.com® reports.

Economists are predicting more homes to enter the market, which could help alleviate the pressure on home prices.

“Prices and sellers reached for the moon this year,” says George Ratiu, director of economic research at realtor.com®. “It looks like we are now about to move back to Earth.”

Lawrence Yun, NAR’s chief economist, forecasts that home prices will increase at a “gentler pace” over the next several months and expects demand to be milder as mortgage rates increase. The 30-year fixed-rate mortgage averaged 3.10% last week, up from a 2.72% average a year ago, Freddie Mac reports.

Source: “Has the Housing Market Peaked? That May Depend on Where You Live,” realtor.com® (Nov. 29, 2021)