Data from December was revised up to a rate of 1.054 million units from an initially reported 1.027 million units. While homebuilding in the Midwest, South, and the West was down, it did rise in the Northeast in January.

Because of a shortage of previously owned homes on the market, homebuilding is expected to rebound in the coming months. There was also a rise in new building permits issued in January, suggesting that a rebound could be underway.

The post U.S. Homebuilding Slumps Amid Cold Weather Conditions appeared first on theprimarymarket.com.

Bright MLS chief economist Lisa Sturtevant insisted that while economic conditions remain tight, steep mortgage rates are not solely to blame for slower home sales. “We can’t blame high mortgage rates for the deficit in transactions last year. In reality, demand for housing — and homeownership, in particular — has remained high, despite higher rates,” Sturtevant explained, continuing, “Prospective homebuyers have been shut out of the market by a lack of inventory. If there had been more listings on the market in 2023, we would have had more home sales.”

Prices have also dissuaded buyers, the NAR reported. While the median home price in 1995 was $114,600, the median home price in the current market is around $389,800.

The post Existing Home Sales Fall to Slowest Pace in 30 Years appeared first on theprimarymarket.com.

As both property developer and private housing sales are expected to slump, the Chinese government pledged to implement several measures to support economic growth including monetary and fiscal stimulus. Still, the country has not yet instituted the same level of support as shown during previous economic downturns. A weaker yuan and high debt levels are expected to add to economic pressures.

“The economy needs more support. We see the central bank delivering it in the third quarter by freeing up more cash for banks to lend and trimming borrowing costs further,” Bloomberg Economics suggested. Still, China remains on track to achieving the government’s 5% economic growth target for the year.

The post Chinese Economy Receives New Blow From Housing Slump appeared first on theprimarymarket.com.

Reuters calculations, based on National Bureau of Statistics (NBS) data, found that June’s price change even fell below the 0.1% rise in May. Compared to June last year, prices remained relatively unchanged as well, also falling from a 0.1% increase in May.

Despite governmental efforts to support the market, China’s property sector continues to struggle since it first entered crisis mode. Local governments, regulators, and the central government in Beijing all announced a slew of measures over the past few months to aid the flailing sector, however, these have had minimal effect. Comprising a quarter of China’s total economy, the property sector remains heavily relied upon.

Among those measures that have been implemented are extended financial support for developers as well as incentives for home buyers. Ultimately, a lack of market confidence and extended periods of flailing demand have erased all hopes of an economic recovery in the near term.

The post China Home Prices Hit New Low in June appeared first on theprimarymarket.com.

While 51% of U.S. earners bring in a household income of $75,000 or less, the report found that only 23% of available home listings nationwide fall within this market segment’s price range.

San Jose, California, and New York were the hardest-hit regions, where middle-class buyers are able to afford only 5% and 13% of property listings respectively.

In contrast, high-income households are facing an abundance of housing options on the market. While only 7% of U.S. households generate an income of $250,000 or more, they are able to afford around 85% of all listed properties.

“The housing affordability issues would not be so severe if homes were dispersed in a more adequate match for the distribution of households by income level,” Nadia Evangelou, senior economist and director of real estate research at the National Association of Realtors observed.

According to Evangelou, a more targeted approach is required when new homes are built going forward.

The post U.S. Middle-Class Homebuyers Hit By Housing Shortages appeared first on theprimarymarket.com.

Bankrate mortgage analyst Jeff Ostrowski claimed that while mortgage rates and home prices may be able to drop in price marginally in the coming months, no significant drop can be expected over the next two years. This is because the Federal Reserve is expected to keep interest rates high, thereby putting upward pressure on mortgage rates. Ostrowski forecast mortgage rates to float between 5% and 6% over the next year.

Redfin deputy chief economist Taylor Marr agreed with this sentiment, predicting that mortgage rates would ease to approximately 6% by the end of the year. “It feels like prices aren’t really changing much and interest rates aren’t changing much,” Marr admitted. “We’ve been describing it sort of like a game of musical chairs, where most participants are just in their seats, and once people start to get up out of their seats, that’s where there will be affordable housing opportunities.”

The post Housing Market Affordability Expected to Remain Low, Experts Warn appeared first on theprimarymarket.com.

Existing home sales fell to 4.44 million, a decline of 2.4% compared to February and a 22% fall from March last year. According to FactSet, economists were expecting 4.5 million home sales for the month.

The number of homes readily available for purchase on the market rose by 1% from February to 980,000 properties. This marks a 5.4% increase from March of 2022. The national median home price for March 2023 was $375,000; a decline of 0.9% from March 2022.

Although the median home price was on the decline, mortgage rates continued to rise in March. By the second week of March, the 30-year mortgage hit 6.73%

The post Domestic U.S. Home Sales Decline in March appeared first on theprimarymarket.com.

According to the study conducted by the China Index Academy (CIA), house prices in 100 cities across China fell for a sixth consecutive month in December. Prices declined by 0.08% in December after falling by 0.06% in November. CIA is one of the largest independent research firms in the country.

While 57 of the 100 surveyed cities experienced a drop in prices over November, 68 reported a decline in December.

Although the Chinese property market got a boost from the government’s decision in early December to drop its strict zero-Covid policy, the rise in Covid cases across the country and the lack of monitoring has had an adverse effect on the market.

“Real estate policies may continue to maintain an accommodative tone with room for policy easing on the supply and demand side in 2023,” the report read. “the housing market is expected to stabilize gradually next year.”

The post Chinese Housing Prices Decline at Accelerating Rate in December, Study Finds appeared first on theprimarymarket.com.

As stated by analysts in the Goldman Sachs’ Global Investment Research report this week, a correction to house prices nationwide is unlikely in 2023, however, this doesn’t mean that certain metropolitan areas will not experience significant drops.

Some of the markets where Goldman Sachs expects a significant price decline include the Western cities of Denver, Phoenix, and Los Angeles. “In recent months, 9% of active listings have cut prices per Zillow; these price cuts have been most common in metros that saw a sharp run-up through 2020 and 2021, and may be a sign of further weakness to come,” Goldman said.

In contrast, homes in east coast cities are expected to continue to appreciate going into next year, while south and southeast metros are also expected to see an upward trend due to their rising demand and relative affordability.

The post Goldman Sachs Forecasts Decline in Home Prices in 39% of U.S. Cities Next Year appeared first on theprimarymarket.com.

According to DLB Financial Services CEO Debbie Boyd, the current state of the U.S. housing market indicates a return to pre-pandemic levels. However, that doesn’t mean any sort of market crash is upon us.

“What we’re going to do is just go back to normal,” Boyd told Yahoo Finance. “Before COVID, you would put your house on the market, and it may stay there two or three months, and you’d get a couple of offers. We’re back to normal, and normal means things are going to go a little bit slower.”

Increased mortgage rates have played a significant role in cooling down the housing market. The 30-year fixed mortgage was at 3.55% in early 2022, with forecasts indicating a jump to 4% by the end of the year. However, what happened was that the Fed hiked their interest rates, causing the mortgage rates to shoot to peak at 5.81%. The 30-year fixed mortgage stands at 5.30% at the moment.

As a result, homebuyers are backing out of their contracts and becoming increasingly inactive on the market. The sales of new U.S. single-family homes are down to their two-year lows in June and are now reaching the early pandemic numbers. In May, the sales went down 17.4 on a year-on-year basis.

The post Housing Market Getting Back to Normal Experts Say appeared first on theprimarymarket.com.

Data from December was revised up to a rate of 1.054 million units from an initially reported 1.027 million units. While homebuilding in the Midwest, South, and the West was down, it did rise in the Northeast in January.

Because of a shortage of previously owned homes on the market, homebuilding is expected to rebound in the coming months. There was also a rise in new building permits issued in January, suggesting that a rebound could be underway.

The post U.S. Homebuilding Slumps Amid Cold Weather Conditions appeared first on theprimarymarket.com.

Bright MLS chief economist Lisa Sturtevant insisted that while economic conditions remain tight, steep mortgage rates are not solely to blame for slower home sales. “We can’t blame high mortgage rates for the deficit in transactions last year. In reality, demand for housing — and homeownership, in particular — has remained high, despite higher rates,” Sturtevant explained, continuing, “Prospective homebuyers have been shut out of the market by a lack of inventory. If there had been more listings on the market in 2023, we would have had more home sales.”

Prices have also dissuaded buyers, the NAR reported. While the median home price in 1995 was $114,600, the median home price in the current market is around $389,800.

The post Existing Home Sales Fall to Slowest Pace in 30 Years appeared first on theprimarymarket.com.

As both property developer and private housing sales are expected to slump, the Chinese government pledged to implement several measures to support economic growth including monetary and fiscal stimulus. Still, the country has not yet instituted the same level of support as shown during previous economic downturns. A weaker yuan and high debt levels are expected to add to economic pressures.

“The economy needs more support. We see the central bank delivering it in the third quarter by freeing up more cash for banks to lend and trimming borrowing costs further,” Bloomberg Economics suggested. Still, China remains on track to achieving the government’s 5% economic growth target for the year.

The post Chinese Economy Receives New Blow From Housing Slump appeared first on theprimarymarket.com.

Reuters calculations, based on National Bureau of Statistics (NBS) data, found that June’s price change even fell below the 0.1% rise in May. Compared to June last year, prices remained relatively unchanged as well, also falling from a 0.1% increase in May.

Despite governmental efforts to support the market, China’s property sector continues to struggle since it first entered crisis mode. Local governments, regulators, and the central government in Beijing all announced a slew of measures over the past few months to aid the flailing sector, however, these have had minimal effect. Comprising a quarter of China’s total economy, the property sector remains heavily relied upon.

Among those measures that have been implemented are extended financial support for developers as well as incentives for home buyers. Ultimately, a lack of market confidence and extended periods of flailing demand have erased all hopes of an economic recovery in the near term.

The post China Home Prices Hit New Low in June appeared first on theprimarymarket.com.

While 51% of U.S. earners bring in a household income of $75,000 or less, the report found that only 23% of available home listings nationwide fall within this market segment’s price range.

San Jose, California, and New York were the hardest-hit regions, where middle-class buyers are able to afford only 5% and 13% of property listings respectively.

In contrast, high-income households are facing an abundance of housing options on the market. While only 7% of U.S. households generate an income of $250,000 or more, they are able to afford around 85% of all listed properties.

“The housing affordability issues would not be so severe if homes were dispersed in a more adequate match for the distribution of households by income level,” Nadia Evangelou, senior economist and director of real estate research at the National Association of Realtors observed.

According to Evangelou, a more targeted approach is required when new homes are built going forward.

The post U.S. Middle-Class Homebuyers Hit By Housing Shortages appeared first on theprimarymarket.com.

Bankrate mortgage analyst Jeff Ostrowski claimed that while mortgage rates and home prices may be able to drop in price marginally in the coming months, no significant drop can be expected over the next two years. This is because the Federal Reserve is expected to keep interest rates high, thereby putting upward pressure on mortgage rates. Ostrowski forecast mortgage rates to float between 5% and 6% over the next year.

Redfin deputy chief economist Taylor Marr agreed with this sentiment, predicting that mortgage rates would ease to approximately 6% by the end of the year. “It feels like prices aren’t really changing much and interest rates aren’t changing much,” Marr admitted. “We’ve been describing it sort of like a game of musical chairs, where most participants are just in their seats, and once people start to get up out of their seats, that’s where there will be affordable housing opportunities.”

The post Housing Market Affordability Expected to Remain Low, Experts Warn appeared first on theprimarymarket.com.

Existing home sales fell to 4.44 million, a decline of 2.4% compared to February and a 22% fall from March last year. According to FactSet, economists were expecting 4.5 million home sales for the month.

The number of homes readily available for purchase on the market rose by 1% from February to 980,000 properties. This marks a 5.4% increase from March of 2022. The national median home price for March 2023 was $375,000; a decline of 0.9% from March 2022.

Although the median home price was on the decline, mortgage rates continued to rise in March. By the second week of March, the 30-year mortgage hit 6.73%

The post Domestic U.S. Home Sales Decline in March appeared first on theprimarymarket.com.

According to the study conducted by the China Index Academy (CIA), house prices in 100 cities across China fell for a sixth consecutive month in December. Prices declined by 0.08% in December after falling by 0.06% in November. CIA is one of the largest independent research firms in the country.

While 57 of the 100 surveyed cities experienced a drop in prices over November, 68 reported a decline in December.

Although the Chinese property market got a boost from the government’s decision in early December to drop its strict zero-Covid policy, the rise in Covid cases across the country and the lack of monitoring has had an adverse effect on the market.

“Real estate policies may continue to maintain an accommodative tone with room for policy easing on the supply and demand side in 2023,” the report read. “the housing market is expected to stabilize gradually next year.”

The post Chinese Housing Prices Decline at Accelerating Rate in December, Study Finds appeared first on theprimarymarket.com.

As stated by analysts in the Goldman Sachs’ Global Investment Research report this week, a correction to house prices nationwide is unlikely in 2023, however, this doesn’t mean that certain metropolitan areas will not experience significant drops.

Some of the markets where Goldman Sachs expects a significant price decline include the Western cities of Denver, Phoenix, and Los Angeles. “In recent months, 9% of active listings have cut prices per Zillow; these price cuts have been most common in metros that saw a sharp run-up through 2020 and 2021, and may be a sign of further weakness to come,” Goldman said.

In contrast, homes in east coast cities are expected to continue to appreciate going into next year, while south and southeast metros are also expected to see an upward trend due to their rising demand and relative affordability.

The post Goldman Sachs Forecasts Decline in Home Prices in 39% of U.S. Cities Next Year appeared first on theprimarymarket.com.

According to DLB Financial Services CEO Debbie Boyd, the current state of the U.S. housing market indicates a return to pre-pandemic levels. However, that doesn’t mean any sort of market crash is upon us.

“What we’re going to do is just go back to normal,” Boyd told Yahoo Finance. “Before COVID, you would put your house on the market, and it may stay there two or three months, and you’d get a couple of offers. We’re back to normal, and normal means things are going to go a little bit slower.”

Increased mortgage rates have played a significant role in cooling down the housing market. The 30-year fixed mortgage was at 3.55% in early 2022, with forecasts indicating a jump to 4% by the end of the year. However, what happened was that the Fed hiked their interest rates, causing the mortgage rates to shoot to peak at 5.81%. The 30-year fixed mortgage stands at 5.30% at the moment.

As a result, homebuyers are backing out of their contracts and becoming increasingly inactive on the market. The sales of new U.S. single-family homes are down to their two-year lows in June and are now reaching the early pandemic numbers. In May, the sales went down 17.4 on a year-on-year basis.

The post Housing Market Getting Back to Normal Experts Say appeared first on theprimarymarket.com.