Angelina Zeolla, New York Referral Associate

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US home prices are about to tumble as demand for new houses 'craters,' an economist warns "The next few months will be very tough" for the US housing market, economist Ian Shepherdson told clients Tuesday, as fears of a major crash grow.

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Realtors Expect Home Sales Slowdown; Not a Market Collapse

With a backdrop of rising interest rates, slowing buying demand, high inflation and a turbulent stock market, some industry observers are questioning the strength of the residential sales market and forecasting hard times ahead.

The recent 0.75% increase in the short-term benchmark lending rate by the Federal Reserve to try and tame high inflation and with more rate hikes expected in the months ahead is putting a dark cloud over the residential sales market.

The rate increases are an attempt to control inflation, which in May stood at 8.6%, the highest level since December 1981.

𝐑𝐞𝐚𝐝 𝐭𝐡𝐞 𝐟𝐮𝐥𝐥 𝐚𝐫𝐭𝐢𝐜𝐥𝐞: https://www.realestateindepth.com/web-exclusive/realtors-expect-home-sales-slowdown-not-a-market-collapse/ #.YrShCJz9nOY.link

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