Home prices hit all-time high, but more inventory cools price growth

Home-price growth Is cooling 

In early 2021, I emphasized the need for higher mortgage rates to help cool down housing market prices. I also noted that we shouldn’t worry about a significant home-price crash or a severe recession, such as the one in 2008. Mortgage rates didn’t begin to rise until mid-2022, resulting in considerable damage to affordability. However, after three years of the lowest home sales on record, inventory has grown back to a reasonable level. Consequently, home-price growth has slowed down year over year.

If you look at the inventory data below, you’ll see that we are no longer at dangerously unhealthy levels. So while home prices hit an all-time high today, we are in a much healthier marketplace than we’ve been over the last few years.

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