The report suggested that rising inventory could result in lower prices in Q3, but when asked if that would be enough to make a difference to FTHBs, Renter said prices were not likely to fall across the country.
“I’m pretty conservative, so I think we’re going to continue to see home price growth slow and that it’s going to cool a little bit, but prices will probably not actually come down in many places, except in those markets that were significantly overpriced, or where we have seen inventory so scarce over the past few years that an increase of 50% to 100% is enough to make an impact,” she said.
She cited previously hot housing markets, such as those in Salt Lake City, Seattle, Austin and Denver, as areas where prices were more likely to see a noticeable drop because of an increase in housing stock.
That was reflected in the report, which said that the most significant quarterly increases in inventory occurred in some of the hottest housing markets in the US.
The crisis facing FTHBs might result in people having to relocate to more affordable states to find a more affordable home, Renter acknowledged.