How the U.S. Housing Market is Losing Its Sizzle

The once-hot U.S. housing market is cooling down.

A Sept. 2 CNBC headline says:

1 in 5 home sellers are now dropping their asking price as the housing market cools

Redfin, the real estate firm, reports that the average home sold for less than its list price for the first time in more than 17 months during the four-week period ended Aug. 28.

More than that, in August, it took homes an average of five days longer to sell versus a year ago.

The September Elliott Wave Financial Forecast provided this perspective on the U.S. housing market:

In July … the housing market’s weakening advance finally succumbed with a 2.4% month-to-month decline in the median price of a U.S. home. The reversal fits the seasonal pattern, but other housing data suggests this is the start of [a] major downturn. … The updated chart from our April issue shows that total new and existing home sales are now in a near-vertical descent. Basically, it’s another “air pocket.” As we also said, these air pockets will eventually make their way into the economy at large, which is starting to happen.