Housing Inventories May Not Save Prices After All
Home values are retreating in some of the most expensive cities in the country, signaling a potential inflection point for the broader market.
The inventory shortfalls in housing have begun to return to normal in some cities like San Francisco.
Photographer: David Paul Morris/Bloomberg
The real estate market is starting to show signs of cracking in some of the most expensive cities in the country, and other pricey areas should brace for a rough stretch ahead.
In the early part of the year, the prevailing real estate narrative suggested that housing prices would stay buoyant because of a historic shortage of available inventory even as mortgage rates surged. But for all the signs that the market was facing headwinds, few people were prepared for mortgage rates that approached 6% recently, which put monthly payments out of reach for many buyers.