The American real estate market is stabilizing.

The US housing market, which skyrocketed during the pandemic, is returning to normal, pre-pandemic levels.
As experts explain, during the pandemic, people rushed out of the city, which led to an increase in property prices. A general drop in inventories and a lack of building materials made housing prices sky-high for potential buyers.

According to Peter Cardillo, chief market economist for Spartan Capital Securities in New York, the housing market has not yet collapsed, but “we have reached a peak, after which there should be stabilization.”

Pre-owned home sales increased 1.4% to 5.86 million in June on a seasonally adjusted annual basis, according to a report by the National Association of Realtors (NAR) this week.

That number is 40,000 units below the consensus forecast and continues to fall by 1.2% in May.

The decline in production provided stable support for housing construction, but this support is now decreasing.

While the volume of construction of new residential buildings (USHST = ECI) increased by 6.3% in June, the more promising indicator of the number of building permits (USBPE = ECI) decreased by 5.1%, which was the minimum value in 8 months.

These numbers have brought home startups and building permits back to pre-pandemic levels.