US Real Estate Market: This is a Slowdown and Not a Crash

US Home Sales Volumes (both New and Existing Homes) are down 3.82% since their peak in 2016 even as their median sales price reaches new highs.

This trend is borne out by the market for existing homes where prices are still going up as volumes dip, indicating fewer and fewer people can afford the higher home prices.

The opposite trend is true in the market for new homes. Volumes are up while prices are down a mere 2.60% from their peak in 2018.

But since the market for existing homes is almost eight times the size of the new homes market, the existing homes market trend is the dominant one.

Are we in for another housing crash. In a word, no. Not yet. This is just a slowdown and not a crash.