Housing market conditions are largely determined by the balance of homes for sale and interested home buyers. When demand for homes outpaces the supply of homes, prices and competition increase. That’s been the story in recent years, as inventory hit historic lows while buyer demand soared. But, according to a new analysis from the National Association of Realtors’ consumer website, the dynamic may be changing, and it could benefit buyers. Danielle Hale, the website’s chief economist, says a combination of newly … [Read more...]

The housing market has been through some changes over the past five years. For one, home values have risen 45.3 percent since February 2020. That’s more than 10 years of typical price growth in half the time. Naturally, that’s had big impact on how much house you can buy for your money. Even $1 million doesn’t go as far as it did only a few years ago. So what can you buy for $1 million today? Well, one new analysis looked at the data. It found the typical million-dollar home is about 70 square feet smaller than it … [Read more...]

During their pandemic-era peak in 2021, home prices were up 18.9 percent year-over-year at one point. Fortunately, for prospective home buyers, those days are over. Home prices these days are increasing at a much slower pace. But while they aren’t rising as fast as they were a few years ago, they are still climbing. In fact, according to the latest results from the S&P Case-Shiller Home Price Index, national home prices ticked up at the end of last year, posting a 3.9 percent annual gain in December after … [Read more...]

Sales of newly built single-family homes tumbled in January, falling 10.5 percent from the month before, according to new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development. That’s a significant decline but there may be more to the decrease than initially meets the eye. How so? Well, for one, new home sales are often volatile and frequently corrected. For example, last month’s totals were revised upward from the originally reported annual rate of 698,000 units to 734,000 units, … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell to the lowest level since mid-December last week. Rates were down from the week before across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. The drop, however, failed to spur demand for mortgage applications. “Treasury yields moved lower on softer consumer spending data as … [Read more...]

Buying a home that needs some work has appeal. Maybe it’s because of the popularity of home-remodeling shows or our desire to find a bargain, but fixer-uppers have generally been popular over the past 10 years. In fact, before the pandemic, listings that mentioned needing work, “TLC,” or having “good bones” were more likely to sell than those that didn’t. But that may be changing. In fact, according to one new analysis of keywords found in listings, “remodeled” is the hot term for home buyers these days, with … [Read more...]

Each month, Fannie Mae’s Economic and Strategic Research Group releases an outlook detailing what the group believes is ahead for the economy and housing market. According to the most recent release, the economy has started the year off strong and the group believes its momentum will carry forward. But changing trade policy has caused some uncertainty about where things will head from here. Kim Betancourt, Fannie Mae’s vice president of multifamily economics and strategic research, says mortgage rates, in … [Read more...]

Sales of previously owned homes fell 4.9 percent in January, according to the National Association of Realtors. The month-over-month decrease included declines in the South, West, and Northeast. The Midwest was unchanged from the month before. Lawrence Yun, NAR’s chief economist, says affordability remains a challenge. “Mortgage rates have refused to budge for several months despite multiple rounds of short-term interest rate cuts by the Federal Reserve,” Yun said. “When combined with elevated home prices, housing … [Read more...]

New home construction plays an important role in housing market conditions. When builders are building more homes, the added supply helps level the market and keeps home prices from spiking. Which means, if you’re a prospective home buyer, the number of new homes being built affects you – whether you’re buying a new home or not. So, how’s new residential construction doing these days? Well, the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development shows the number of new, … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were mostly flat last week, with slight declines for 30-year fixed-rate loans with conforming balances, 15-year fixed-rate loans, and 5/1 ARMs and increases for FHA and jumbo loans. With rates still elevated, demand for loans to buy homes fell 6 percent week-over-week. Joel Kan, MBA’s vice president and deputy chief economist, says demand was at its slowest pace since the start of the year. “Mortgage rates decreased … [Read more...]