Months of record-breaking prices. A historic imbalance between buyers and sellers. Most homes selling in less than one month.
To say homebuying in 2021 has been difficult is a gross understatement. And it seems that, finally, buyers have had enough.
Two significant developments stand to cool the housing market from its current fervor, economists at UBS said in a Monday note. The mass exodus from cities to rural and exurban neighborhoods is starting to reverse as companies call employees back to their offices. The switch-up should ease demand for houses in the non-urban areas that surged in popularity throughout the pandemic, the UBS team led by Ajit Agrawal said.
And although prices continue to shoot higher, demand is wavering. Total spending has fallen from its recent highs, and the number of houses available has rebounded slightly. Sentiments toward homebuying have also soured, signaling demand will wane further.
Here are 5 charts detailing the pullback in Americans' homebuying appetites.