The U.S. housing market continues to show signs of adjustment as inflation-adjusted house prices remain below their 2022 peak levels. According to recent data, real home prices are now [1], while the price-to-rent index has dropped even more significantly, sitting 9.8% below its 2022 high point. This cooling trend reflects ongoing market adjustments as buyers and sellers navigate the current economic landscape.
The persistent high mortgage rates are having a notable impact on homeowner behavior, with many choosing to stay put rather than move. This shift in consumer patterns has led to an unexpected boom in home improvement and furnishing sectors. [2] that retailers like TJX, Wayfair, and Ikea are seeing increased sales as homeowners opt to renovate and refresh their current spaces instead of relocating.
In the mortgage market, stability appears to be the current theme, particularly in terms of loan performance. Recent reports indicate that single-family serious delinquency rates for both Fannie Mae and Freddie Mac [3], suggesting a relatively healthy mortgage market despite economic pressures.
The market's cooling trend is further evidenced by local housing market data from July, which shows continued adjustments in various regions. While specific regional variations exist, the overall national trend points toward a more balanced market compared to the heated conditions of recent years.
Looking at the international scene, there are signs of continued investment interest in real estate markets. Notably, [4], indicating ongoing confidence in certain property market segments.
- Inflation Adjusted House Prices 2.5% Below 2022 Peak; Price-to-rent index is 9.8% below 2022 peak
- Stymied Homeowners Drive Home Goods Sales At Wayfair, TJX, Ikea
- Fannie and Freddie: Single Family Serious Delinquency Rates Unchanged in July
- Exclusive-China tech giant JD.Com unit, two other firms plan $1 billion Singapore REIT, sources say
