US Housing Market Shift: Sellers Losing Control Amid Inventory Rise

Capital Economics predicts that sellers are losing their grip on the US housing market due to a cooling trend due to increased inventory. Home prices have risen by 5.9% annually in May, down from 6.4% the previous month. This is due to a rise in housing inventory, with active house listings exceeding 800,000 in June. Nearly 65% of homes are going at least 30 days without being contracted. However, Capital Economics predicts a further 5% increase through year-end due to a decline in mortgage rates. The market is expected to become better balanced by 2025 or 2026.