Zillow reported that in 2020, a household with an income of $59,000 per year could afford a home priced at around $240,815. This was less than the median income of $66,000. Now, households need an income of $106,000 in order to afford a median-priced home of $342,941.

“Incomes needed to purchase a home are just much, much higher than the typical household income,” Zillow chief economist Orphe Divounguy observed. Furthermore, mortgage rates for a typical US home have nearly doubled over the past four years.

The post Home Prices Surge By 42% Since 2020 appeared first on theprimarymarket.com.

Economists at Morgan Stanley and Goldman Sachs polled by Bloomberg also reversed the direction of their housing price forecasts as a result of this market unpredictability. According to the latest data from the S&P CoreLogic Case-Shiller national home price index, home prices have risen 4.8% year over year, thereby making JPMorgan’s James Egan the strategist with the most accurate prediction, forecasting a 4% rise.

“The housing market has proven even more resilient than we had expected,” Goldman Sachs fixed income strategist Vinay Viswanathan reflected. “While we are cognizant of the tailwind from tight housing supply, we expect affordability will likely stay poor, ultimately pushing prices lower in 2023.”

The post Housing Market Proved Unpredictable in 2023 appeared first on theprimarymarket.com.

While the recent drop in housing prices is but a small dent in the 20% increase since the height of the COVID-19 pandemic, rising wage growth in the UK is helping to make property more affordable. “Households should be in a better place to capitalize on the improvement in affordability, given the fact we expect real incomes to tick up over the next year or so,” Gabriella Dickens, senior UK economist at Pantheon Macroeconomics observed.

Oxford Economics projected a 4% drop in UK house prices over the course of 2024, with most strategists expecting a drop between zero to 2%. Wages are forecasted to rise by 7.1% between the fourth quarter of 2022 and 2023 and 4% over the 12 months leading to the fourth quarter of 2024, according to Bloomberg Economics.

The post UK Property on Course for Record Affordability appeared first on theprimarymarket.com.

According to the real estate research firm, this rise in prices was driven by developers undertaking new, high-quality housing projects across the country. This provides a significant boost to the world’s second-largest economy given that the real estate sector makes up one-fourth of China’s total economic activity.

While a crackdown on debt accumulation by developers sparked the decline of the property sector in 2021, China has announced several measures in recent weeks to boost home sales, including the easing of borrowing rules and home purchasing regulations.

The post Chinese Home Prices Break Four-Month Decline appeared first on theprimarymarket.com.

In its recent Housing Market Indicators report, the think tank estimated that home prices would rise 2.9% year-over-year in June; up from the 2.1% increase recorded the previous month. In July, AEI expects a 4% rise from the previous year. Home prices are expected to jump by 6% over the course of 2023 and a further 7% in 2024.

“This is largely due to historically low supply, cooling yet still strong job numbers, low levels of foreclosures in most areas of the country, work from home, and continuing home price arbitrage opportunities,” the AEI explained.

According to the Mortgage Bankers Association, the current housing market is the most unaffordable in history. Since the pandemic, house prices have surged by 44%, with over 75% of homes on the market proving too expensive for the middle class, according to a report from the National Association of Realtors and Realtors.com.

The post Housing Market to Spike in 2023 and 2024, Report Suggests 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.

The S&P CoreLogic Case-Shiller US National Home price index increased by 0.5% in April on a seasonally adjusted basis. The index that tracked the 20 largest U.S. metros showed that prices in these areas rose 0.9% in April compared to the previous month, thereby beating the expected 0.35% as stipulated by economists surveyed by Bloomberg.

“The U.S. housing market continued to strengthen in April 2023,” Craig J. Lazzara, managing director at S&P DJI commented. “Home prices peaked in June 2022, declined until January 2023, and then began to recover.”

Around the same time, the Federal Housing Finance Agency reported that average US home prices grew 0.7% month over month in April on a seasonally adjusted basis, thereby corroborating what the S&P index claimed.

Miami, Chicago, and Atlanta were the cities with the largest price increases, gaining 5.2%, 4.1%, and 3.5%, respectively. Seattle and San Francisco were on the other end of the equation, with price drops of 12.4% and 11.1% respectively.

The post Home Prices Rise for Third Straight Month in April appeared first on theprimarymarket.com.

Asking prices in London declined by 1.6% compared to the previous month. In contrast, prices on a national scale remained relatively unchanged, standing 1.1% higher than the previous year.

The decline in prices has been largely driven by a fall in buyer interest, particularly as interest rates continue to rise. Mortgage rates have continued to rise off the back of speculation that the Bank of England will continue to raise interest rates in an effort to cool inflation.

Standing at 6.01%, the two-year fixed-rate home loan is at its highest level since December. The average five-year fixed-rate home loan is at 5.67%, having crossed 5.5% last week for the first time since January.

Across the board, mortgage rates are edging closer to the 14-year highs reached at the end of 2022, while threatening to cross 6% for the first time since 2001.

The post London Home Prices Fall as Rates Discourage Buyers appeared first on theprimarymarket.com.

The S&P CoreLogic Case-Shiller U.S. National Home Price index rose 0.4% in March. The index uses data on properties that have been sold at least twice in the past so as to calculate the changes in each property’s value more accurately.

According to the index, housing values in the 20 largest metros in the U.S. showed rose by 0.5% over the last month on a seasonally adjusted basis. This is a 1.10% decrease compared to the same period last year. Analysts surveyed by Bloomberg expected to change on a monthly basis and a 1.60% decline on an annual basis.

Miami proved to be the city with the steepest price rise of 7.7%, followed by Tampa and Charlotte, where housing prices rose by 4.8% and 4.7% respectively. In contrast, Seattle experienced a price decline of 12.4%, followed by San Francisco with an 11.2% drop.

The post Home Prices Rise for Second Straight Month appeared first on theprimarymarket.com.

Since hitting their post-pandemic high in the second quarter of 2022, housing prices have been constantly coming down. According to data from Redfin, the median U.S. home price in March was $400,706; a 3.3% decline on an annual basis. This is also an 8% decline from peak pricing in May 2022.

Abbey Omodunbi, PNC Bank Senior Economist, stated that a decline in demand and excess supply are expected to drive down prices this year.

“Financial conditions will likely tighten in 2023,” Omodunbi observed. “We do expect the Fed to raise the Fed funds rate by a quarter of a percentage point going into the meeting in two weeks. And also after the bank failures in March, many banks are likely to be more cautious. So we might see some tighter lending standards.”

The post Economists Expect U.S. Home Prices to Decrease By 10% This Year appeared first on theprimarymarket.com.

Zillow reported that in 2020, a household with an income of $59,000 per year could afford a home priced at around $240,815. This was less than the median income of $66,000. Now, households need an income of $106,000 in order to afford a median-priced home of $342,941.

“Incomes needed to purchase a home are just much, much higher than the typical household income,” Zillow chief economist Orphe Divounguy observed. Furthermore, mortgage rates for a typical US home have nearly doubled over the past four years.

The post Home Prices Surge By 42% Since 2020 appeared first on theprimarymarket.com.

Economists at Morgan Stanley and Goldman Sachs polled by Bloomberg also reversed the direction of their housing price forecasts as a result of this market unpredictability. According to the latest data from the S&P CoreLogic Case-Shiller national home price index, home prices have risen 4.8% year over year, thereby making JPMorgan’s James Egan the strategist with the most accurate prediction, forecasting a 4% rise.

“The housing market has proven even more resilient than we had expected,” Goldman Sachs fixed income strategist Vinay Viswanathan reflected. “While we are cognizant of the tailwind from tight housing supply, we expect affordability will likely stay poor, ultimately pushing prices lower in 2023.”

The post Housing Market Proved Unpredictable in 2023 appeared first on theprimarymarket.com.

While the recent drop in housing prices is but a small dent in the 20% increase since the height of the COVID-19 pandemic, rising wage growth in the UK is helping to make property more affordable. “Households should be in a better place to capitalize on the improvement in affordability, given the fact we expect real incomes to tick up over the next year or so,” Gabriella Dickens, senior UK economist at Pantheon Macroeconomics observed.

Oxford Economics projected a 4% drop in UK house prices over the course of 2024, with most strategists expecting a drop between zero to 2%. Wages are forecasted to rise by 7.1% between the fourth quarter of 2022 and 2023 and 4% over the 12 months leading to the fourth quarter of 2024, according to Bloomberg Economics.

The post UK Property on Course for Record Affordability appeared first on theprimarymarket.com.

According to the real estate research firm, this rise in prices was driven by developers undertaking new, high-quality housing projects across the country. This provides a significant boost to the world’s second-largest economy given that the real estate sector makes up one-fourth of China’s total economic activity.

While a crackdown on debt accumulation by developers sparked the decline of the property sector in 2021, China has announced several measures in recent weeks to boost home sales, including the easing of borrowing rules and home purchasing regulations.

The post Chinese Home Prices Break Four-Month Decline appeared first on theprimarymarket.com.

In its recent Housing Market Indicators report, the think tank estimated that home prices would rise 2.9% year-over-year in June; up from the 2.1% increase recorded the previous month. In July, AEI expects a 4% rise from the previous year. Home prices are expected to jump by 6% over the course of 2023 and a further 7% in 2024.

“This is largely due to historically low supply, cooling yet still strong job numbers, low levels of foreclosures in most areas of the country, work from home, and continuing home price arbitrage opportunities,” the AEI explained.

According to the Mortgage Bankers Association, the current housing market is the most unaffordable in history. Since the pandemic, house prices have surged by 44%, with over 75% of homes on the market proving too expensive for the middle class, according to a report from the National Association of Realtors and Realtors.com.

The post Housing Market to Spike in 2023 and 2024, Report Suggests 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.

The S&P CoreLogic Case-Shiller US National Home price index increased by 0.5% in April on a seasonally adjusted basis. The index that tracked the 20 largest U.S. metros showed that prices in these areas rose 0.9% in April compared to the previous month, thereby beating the expected 0.35% as stipulated by economists surveyed by Bloomberg.

“The U.S. housing market continued to strengthen in April 2023,” Craig J. Lazzara, managing director at S&P DJI commented. “Home prices peaked in June 2022, declined until January 2023, and then began to recover.”

Around the same time, the Federal Housing Finance Agency reported that average US home prices grew 0.7% month over month in April on a seasonally adjusted basis, thereby corroborating what the S&P index claimed.

Miami, Chicago, and Atlanta were the cities with the largest price increases, gaining 5.2%, 4.1%, and 3.5%, respectively. Seattle and San Francisco were on the other end of the equation, with price drops of 12.4% and 11.1% respectively.

The post Home Prices Rise for Third Straight Month in April appeared first on theprimarymarket.com.

Asking prices in London declined by 1.6% compared to the previous month. In contrast, prices on a national scale remained relatively unchanged, standing 1.1% higher than the previous year.

The decline in prices has been largely driven by a fall in buyer interest, particularly as interest rates continue to rise. Mortgage rates have continued to rise off the back of speculation that the Bank of England will continue to raise interest rates in an effort to cool inflation.

Standing at 6.01%, the two-year fixed-rate home loan is at its highest level since December. The average five-year fixed-rate home loan is at 5.67%, having crossed 5.5% last week for the first time since January.

Across the board, mortgage rates are edging closer to the 14-year highs reached at the end of 2022, while threatening to cross 6% for the first time since 2001.

The post London Home Prices Fall as Rates Discourage Buyers appeared first on theprimarymarket.com.

The S&P CoreLogic Case-Shiller U.S. National Home Price index rose 0.4% in March. The index uses data on properties that have been sold at least twice in the past so as to calculate the changes in each property’s value more accurately.

According to the index, housing values in the 20 largest metros in the U.S. showed rose by 0.5% over the last month on a seasonally adjusted basis. This is a 1.10% decrease compared to the same period last year. Analysts surveyed by Bloomberg expected to change on a monthly basis and a 1.60% decline on an annual basis.

Miami proved to be the city with the steepest price rise of 7.7%, followed by Tampa and Charlotte, where housing prices rose by 4.8% and 4.7% respectively. In contrast, Seattle experienced a price decline of 12.4%, followed by San Francisco with an 11.2% drop.

The post Home Prices Rise for Second Straight Month appeared first on theprimarymarket.com.

Since hitting their post-pandemic high in the second quarter of 2022, housing prices have been constantly coming down. According to data from Redfin, the median U.S. home price in March was $400,706; a 3.3% decline on an annual basis. This is also an 8% decline from peak pricing in May 2022.

Abbey Omodunbi, PNC Bank Senior Economist, stated that a decline in demand and excess supply are expected to drive down prices this year.

“Financial conditions will likely tighten in 2023,” Omodunbi observed. “We do expect the Fed to raise the Fed funds rate by a quarter of a percentage point going into the meeting in two weeks. And also after the bank failures in March, many banks are likely to be more cautious. So we might see some tighter lending standards.”

The post Economists Expect U.S. Home Prices to Decrease By 10% This Year appeared first on theprimarymarket.com.