U.S. Census Bureau Reports Big Drop In Housing Market Sales

The housing market has been going crazy over the last few years, and for a while, it seemed like there was no end in sight — but prices may finally be starting to decline.

The U.S. Census Bureau released a report in May revealing that sales of new homes dropped 16.6% between March and April 2022 — and a whopping 26.9% since April 2021.

The number of sales has reached its lowest point since the pandemic’s start.

But does this mean we now know the direction of prices and can expect may be not a housing market crash but at least, a trend of lower housing market prices? Let’s take a look at the evidence.

What the Report Says About Housing Market Sales

There have been several reports recently offering conflicting data on the direction of housing market prices; A Zillow report indicated higher prices while a report from CoreLogic suggested lower prices.  The latter is in line with the U.S. Census Bureau and the Department of Housing and Urban Development report.

This is a monthly joint report on the sales of new single-family houses each month. The latest notes that 591,000 new homes were sold in April 2022 — compared to 809,000 in March 2022 and 809,000 in April 2021.



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What the Drop Means

While the housing market has been on fire over the last couple of years, we’ve also remained firmly within a seller’s market. The housing bubble we’re witnessing   means more prospective buyers are looking for homes than houses on the market, which gives sellers much more influence on prices.

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