The Most Important Number of the Week Is 74
The University of Michigan sentiment index signals the housing market is cooling off, but that’s no cause for alarm.
Describing the performance of the real estate market as “hot” would be an understatement.
Photographer: Johnny Milano/Bloomberg
There’s a new favorite parlor game sweeping across U.S. neighborhoods. It’s called: “How Much Can I Can Get for My House?”
Describing the performance of the real estate market as “hot” would be an understatement. The National Association of Realtors said this week that the median price of an existing home reached a record $350,300 in May, up 23.6% from a year earlier. The reasons behind the gains are well known. Historically low interest rates, a dearth of supply and trillions of dollars in fiscal and monetary stimulus to support the economy through the pandemic have proved to be powerful tailwinds for housing. But this week also brought some evidence that those winds may no longer be having a positive effect, and that’s not such a bad thing.