Many potential buyers who have been stuck on the sidelines are likely cheering this slowdown and hoping prices might fall enough for them to jump back in. But that is unlikely, at least on a grand scale.
For those trying to get on the housing ladder, all of this means buying won’t get notably less expensive for the foreseeable future. Instead, this market transition only suggests that those who can still afford to buy a home are getting a little breathing room.
To truly ease America’s affordability crisis, we need to build more housing at all price points — especially entry-level.
Struggling Americans shouldn’t be left cheering for a crash that ultimately won’t get them any closer to homeownership. There’s no better time for policymakers to help homes of all types be built faster.