The crazy housing market is slowing but it's still out of reach for … – Axios

Homebuyers face a lot of competition. Photo: Raychel Brightman/Newsday RM via Getty Images
The red-hot housing market is starting to cool this spring, after nearly two years of soaring prices and shrinking inventories.
Why it matters: Homebuyers and renters who've been struggling to find an affordable place to live will have more choices and fewer bidding wars — if only just a little.
What's happening: The supply of homes for sale is finally increasing, after being depleted over the past year and a half, Zillow reports.
More houses for sale should help slow the frenetic pace of the U.S. market, in which the median home was snatched up in just six days in April.
New home construction has also bolstered the housing supply, says Lawrence Yun, chief economist for the National Association of Realtors.
The big picture: The dynamics of the housing market are shifting in many ways, with rising mortgage rates becoming a factor for the first time in a while.
Between the lines: As inventories rise, prices soften. Redfin reports 15% of home sellers cut their asking price last month — up from 9% a year ago.
Be smart: The cooldown is not a sign of a housing crash — just an indication that we're going to return to a more balanced market, says Tucker of Zillow.
What to watch: Some overheated markets — like Charlotte, North Carolina, and Phoenix — could see a price correction over the coming year, Moody's Analytics chief economist Mark Zandi tells Fortune.
The bottom line: It'll probably be a year or two before housing demand and supply are back in equilibrium, says Tucker.

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