Homes stand in this aerial photograph taken with a tilt-shift lens above New Jersey, U.S. Photographer: Craig Warga/Bloomberg

This is how housing markets turn. Slowly.

Six years of home-price gains outpacing wage growth; bidding wars replaced by sales at the asking price; days or weeks on the market turning into months; rising mortgage rates. First-time shoppers start to get priced out, making it harder for move-up buyers to sell, and the slowdown ripples gradually up the real estate food chain.

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