High mortgage rates and tight inventory are slowing home sales in the D.C. region, leading to predictions of a slowdown in the housing market and the possibility of a market freeze if inflation and interest rates increase.
China's property market is seeing strong sales and rising rents, indicating a continuing demand for housing that pessimists are missing, according to veteran economist Hong Hao.
The current housing market is facing challenges due to rising interest rates and higher prices, leading to a slowdown in home sales, but the market is more resilient and better equipped to handle these fluctuations compared to the Global Financial Crisis, thanks to cautious lending practices and stricter regulations.
Canadian retail sales rose more than expected in June, indicating a rebound in activity, particularly in the motor vehicle and parts dealers, sporting goods stores, and gas stations sectors, while spending on rate-sensitive products like furniture contracted.
New home sales in the US increased by 4.4% in July, outperforming expectations and highlighting the continued demand for new construction due to a shortage of existing affordable homes. Despite rising mortgage rates, buyers are turning to new homes, causing a decline in sales in the resale market. However, as mortgage rates continue to rise, builder sentiment may be negatively impacted and prices may need to be adjusted to attract buyers.
Mortgage rates topping 7% have led to a significant drop in mortgage applications for home purchases, with last week seeing the smallest volume in 28 years. The increase in rates, driven by concerns of high inflation, has priced out many potential buyers and contributed to low housing supply and high home prices. As a result, sales of previously owned homes have declined, and homeowners are reluctant to sell their properties due to the higher rates. Some buyers are turning to adjustable-rate mortgages to manage the increased costs.
The strong job market and rising wages are creating eager buyers in the housing market, making it a great time to sell your house.
The housing market in 2024 is expected to remain challenging for both buyers and sellers, with high mortgage rates, steep home prices, and low inventory levels, but if mortgage rates cool as predicted, market activity should increase.
Canadian real estate and the economy are facing challenges, with slowing growth, high debt for millennials, increased fixed-rate mortgages, rising housing prices as an inflation risk, and low mortgage growth prompting concerns.
Zillow predicts that US home prices will continue to rise, with a 6.5% increase over the next 12 months, driven by tight inventory levels and high demand, while other firms like Moody's Analytics and Morgan Stanley believe there may be a decline in home prices by the end of 2024.
Pending home sales in the Seattle area have slightly increased this summer but remain close to recent lows, according to a report by Redfin.
US home prices are expected to surge by 6.5% due to tight inventory and high mortgage rates, according to Zillow, contradicting predictions of a decline by other firms.
The Toronto real estate market remains strong, with prices steadily increasing and supply failing to keep up with demand, leading to higher prices; the best time to buy a house in Toronto is typically in January or August.
Home prices in the U.S. rose for the fifth consecutive month in June, despite high mortgage rates, with national prices increasing by 0.9% and only down 0.02% from their peak in June 2022, according to the S&P CoreLogic Case-Shiller index. However, there were significant regional differences, with cities on the West Coast experiencing some of the biggest declines. The housing market continues to face challenges due to low inventory and slow new construction.
Home prices in the US have continued to rise for the fifth consecutive month, reaching near all-time highs, although high mortgage rates could impact further price gains for the rest of the year. Cities in the Midwest and New England saw the most notable price acceleration, while cities in the West experienced year-over-year price drops. Low inventory remains a challenge, with few homeowners wanting to sell, leading to higher prices and increased competition for available homes. In contrast, the rental market is offering more affordability as rental inventory increases.
Pending home sales in the US rose by 0.9% in July, marking the second consecutive month of growth, despite high prices and increasing mortgage rates, with the rise attributed to an expanding job market and the potential for further increases given the number of failed offers; however, year-over-year pending transactions fell by 14%.
More affordable housing markets with larger housing stock are attracting homebuyers, while demand is down in formerly buzzing markets with skyrocketing home prices and high mortgage rates, according to Realtor.com's "Hottest Zip Codes of 2023" report.
Home prices in the US hit another all-time high in July, but month-to-month gains weakened and suggest a potential slowdown, likely due to rising mortgage rates and increased listings.
Home prices, which had been steadily rising since January, may be starting to decline again due to weakening month-to-month gains and higher mortgage rates.
The housing market is entering its slow season and home sales may be impacted by high mortgage rates, but home builder stocks could remain strong.
Average 30-year mortgage rates are still elevated at 6.94% in August, but they are expected to come down by the end of the year; however, a significant drop that will boost homebuying demand is not likely until 2024 or 2025, but there are advantages to buying a home even when rates are high, such as less competition.
Homebuilders are thriving due to a chronic shortage of existing housing inventory, leading to increased home prices and strong sales, according to KB Home CEO Jeffrey Mezger. The lack of inventory is also reflected in the significant drop in active home listings, with only Austin returning to pre-pandemic levels, while other markets have experienced substantial declines. Despite rising mortgage rates, the scarcity of existing inventory has prevented a steep national home price decline.
The housing market has experienced significant changes, with high mortgage rates and low inventory leading to slower sales and longer time on the market, but experts predict that mortgage rates will eventually decrease and home prices will continue to appreciate, with no imminent crash expected; the market is expected to shift towards a more balanced state in the next five years, and the suburban market is predicted to remain strong, particularly in areas with rising populations.
The Atlanta-area housing market in August reached a plateau with slow price increases due to high mortgage rates, limited inventory, and a housing shortage, but experts predict a flood of buying once mortgage rates decrease.
New home sales in Beijing have increased by 16.9% in the week of September 4-10, indicating that government efforts to revive the property sector are having an impact in the Chinese capital. However, the rebound in sales is not reflected across the rest of China, with sales falling 20% on average nationwide.
The D.C.-area housing market is experiencing high interest rates, historically low inventory levels, and multiple offers, leading to a "dysfunctional" market for buyers and sellers.
The Greater Boston housing market experienced a slow month in August, with home sales dropping to their lowest point for the month since 2010, primarily due to higher interest rates and a shortage of available homes for sale, leading to increased competition and higher prices for buyers.
Home prices in California reached a 15-month high in August 2023, attributed to rising mortgage rates and a shortage of homes on the market, but the market is expected to improve in the last quarter of the year as interest rates ease, according to the California Association of Realtors.
U.S. home price growth increased to 2.5% year-over-year in July, with Miami, St. Louis, and Detroit driving the growth, while 11 states saw annual home price declines, according to CoreLogic's latest home price index data. Rising mortgage rates and a lack of inventory are putting pressure on potential homebuyers, and pending home sales have seen slight upticks, particularly in the West and South regions.
The D.C.-area housing market is facing challenges as rising interest rates discourage buyers and sellers, leading to tight inventory, high prices, and limited relief in sight.
