Although the market is cooling, prices are still on a strong upward trajectory that will be maintained for several months at least. Supply is increasing while demand is falling, but the gap is so large that it will take a long time for these two elements to achieve balance, even if the current trend continues.

The price increases over the past 2 years have been extremely large, but should not be surprising to Cromford® Report subscribers, given the very high levels reached by the Cromford® Market Index since mid-2020. They will of course be surprising to followers of the CoreLogic Monthly Home Price Insights reports, who have forecast that price increases would be very weak from mid-2020 onwards. In fact in June 2020 they told us that home prices would fall by 6.6% by June 2021. A year later in June 2021, they projected that prices would rise by 3.2% by June 2022. It is hard to imagine anyone being more consistently inaccurate in forecasting home prices.

Here is what has actually happened over the past 2 years:

The averages are for single-family detached homes only. The cities are listed in order by total dollar volume.

Market incites provided by the Cromford report.