Housing Market Shows Signs of Cooling Off After Yearlong Frenzy

The yearlong real estate frenzy that saw home prices skyrocketing amid a tightly constricted housing supply is showing signs of cooling off as more homes are put up for sale throughout the U.S.

New listings per month have steadily increased since December, and overall active monthly listings have been on an upward trend since April, jumping significantly in June, the Wall Street Journal reports.

Aspen, Colo.-based realtor Douglas Elliman told the paper that even just two months ago real estate agents were worried that they were “literally going to run out of inventory,” but the market has “shifted” since then.

Home price growth has also slowed down as the summer has gone on, rising only about 13 percent in June compared to nearly 18 percent in April.

Much of the increase in stock is reportedly tied to a flood of luxury, $1 million-plus homes hitting the market; listings of homes under $350,000 was down significantly relative to the more expensive homes.

Interest rates, meanwhile, have continued to fall for 30-year fixed mortgages, a trend which will likely continue to keep homebuying abreast of new stock at least for the short-term.