The housing market is finally showing signs of slowing down. After a wild ride during the pandemic, prices are starting to cool off. In April, home prices only went up by 2. 7% compared to the same time last year. That's a big drop from the 3. 4% increase seen in March. It's the smallest gain in almost two years.

Some places are seeing prices flatline or even drop. Tampa and Dallas, which were hotspots during the pandemic, are now seeing prices fall. Tampa is down by 2. 2%, and Dallas is slightly down by 0. 2%. San Francisco prices are barely moving, while Phoenix and Miami are only seeing tiny gains.

Higher mortgage rates are making it tough for many people to buy homes. Rates shot up over 7% in April and have since settled just under that mark. This is keeping monthly payments high, which is pricing out a lot of first-time buyers. In May, first-time buyers made up only 30% of sales, down from the usual 40%.

The supply of homes for sale is going up, but it's still not enough to meet demand. Only 6% of sellers are at risk of selling at a loss, which is a bit higher than last year but still historically low. Experts say the market is maturing and becoming more stable.

Some regions are doing better than others. New York saw the biggest price increase, with a 7. 9% annual gain. Chicago and Detroit also saw significant increases. This is a shift from the early pandemic days when the Sun Belt was the place to be.

While prices are weakening, they're not dropping dramatically. The market is still far from the big declines seen after the subprime mortgage crisis. Experts say the supply-demand imbalance is keeping prices from falling too much.

House Prices Take a Breather: What's Really Going On?

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