Housing market sizzles despite cooling inflation

Inflation has shown signs of cooling down, but the housing market remains stubbornly expensive. Rental prices have surged by 26% since February 2020 and the scarcity of houses and high-interest rates have posed challenges for buyers.

The National Association of Realtors reports median home prices are at $413,800, the second-highest ever despite the declining existing-home sales.

With the limited inventory, demand for housing continues to outpace supply resulting in fierce competition and skyrocketing prices.

Adding to the woes are higher mortgage rates that deter homeowners from selling their houses and buying new ones.