The post Home Prices Surge By 42% Since 2020 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.
]]>The post Ending of Sales Commission Expected to Boost Homebuying appeared first on theprimarymarket.com.
]]>In terms of the settlement, the agents’ commission will no longer be included in listings placed on multiple listing services. This move is expected to push home prices lower, with the abolishment of the current homebuying model where sellers pay both their broker and the buyer’s broker.
With prices expected to fall, TD Cowen Insights reported that real estate commissions are set to fall between 25% and 50% following the decision to bring an end to 6% commissions. Real estate shares slumped following the decision, with Zillow and Compass both sinking by more than 13%. Real estate brokerage Redfin declined by 5%.
The post Ending of Sales Commission Expected to Boost Homebuying appeared first on theprimarymarket.com.
]]>The post U.S. Homeowners Remain In Homes Longer Than They Did 20 Years Ago appeared first on theprimarymarket.com.
]]>This trend is leading to a shortage of home inventory, with the prospect of higher mortgage rates dissuading homeowners from parting ways with their existing homes. According to the National Association of Realtors, existing home sales hit a 30-year low last year, a testament to this “lock-in” effect where homeowners refuse to let go of their cheaper mortgage rates.
Of those born between 1946 and 1964, 40% have remained in their homes for at least 20 years, Redfin found. A further 16% have been in their current homes for 10 to 19 years. According to the study, this appears to be a generational trend rather than a broader market one, with only around 7% of millennials staying in their homes for 10 years or longer.
The post U.S. Homeowners Remain In Homes Longer Than They Did 20 Years Ago appeared first on theprimarymarket.com.
]]>The post U.S. Homebuilding Slumps Amid Cold Weather Conditions 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.
]]>The post Existing Home Sales Fall to Slowest Pace in 30 Years 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.
]]>The post UK Property on Course for Record Affordability 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.
]]>The post U.S. Homebuilders More Confident as Interest Rates Ease appeared first on theprimarymarket.com.
]]>“With mortgage rates down roughly 50 basis points over the past month, builders are reporting an uptick in traffic as some prospective buyers who previously felt priced out of the market are taking a second look,” NAHB Chairwoman Alicia Huey observed, reflecting on the easing market conditions.
In October, the average rate for the 30-year fixed-rate mortgage surged to a two-decade high of 7.9% before retreating to 7.07% last week, data from the Mortgage Bankers Association showed. This is another sign of easing inflation, with investors becoming more confident that the Federal Reserve will cut interest rates early in 2024.
The post U.S. Homebuilders More Confident as Interest Rates Ease appeared first on theprimarymarket.com.
]]>The post 30-Year Mortgage Rate Retreats to September Level appeared first on theprimarymarket.com.
]]>15-year new purchase loans also declined, falling by three basis points to 6.85%; their lowest level since August. It’s also a decline from the 7.59% peak reached in August, which is the highest average level since 2000. The 30-year average fell even further, declining by 12 basis points to 6.69%; its lowest level since August as well.
Refinancing rate averages also declined, with the exception of the 30-year refinancing rate. The 30-year refi average surged higher by 20 basis points; a colossal 68 basis points higher than the 30-year new purchase rate.
The post 30-Year Mortgage Rate Retreats to September Level appeared first on theprimarymarket.com.
]]>The post Homebuyers Rely Increasingly Less on Down Payment Loans appeared first on theprimarymarket.com.
]]>With prices and mortgage rates continuing to simmer, experts explain that the current market is composed of high-income buyers who are financially self-sufficient. “Just among all buyers, they tend to be wealthier. We’re seeing that especially in the current market, [buyers] might need to have that extra income just to be able to get into the homeownership market,” Brandi Snowden, the NAR’s director of member and consumer survey research explained.
Data from Realtor.com indicated that the percentage share of down payment to home price rose to 14.71% in the third quarter of 2023; the highest level in the past 10 years.
The post Homebuyers Rely Increasingly Less on Down Payment Loans appeared first on theprimarymarket.com.
]]>The post Home Improvement Spending to Tank Amid High Interest Rates appeared first on theprimarymarket.com.
]]>Data from the National Association of Home Builders (NAHB) showed that home remodeler confidence fell during the third quarter. “While there is still demand for remodeling, we are seeing some customers pull back a bit, especially for larger projects, due to higher prices and increased interest rates,” NAHB Remodelers Chair Alan Archuleta observed.
Over the course of 2020 and 2021, the pandemic pushed interest in home improvement upward, especially with people spending more time in their homes. That interest has since started to return to pre-pandemic levels.
The post Home Improvement Spending to Tank Amid High Interest Rates appeared first on theprimarymarket.com.
]]>The post Home Prices Surge By 42% Since 2020 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.
]]>The post Ending of Sales Commission Expected to Boost Homebuying appeared first on theprimarymarket.com.
]]>In terms of the settlement, the agents’ commission will no longer be included in listings placed on multiple listing services. This move is expected to push home prices lower, with the abolishment of the current homebuying model where sellers pay both their broker and the buyer’s broker.
With prices expected to fall, TD Cowen Insights reported that real estate commissions are set to fall between 25% and 50% following the decision to bring an end to 6% commissions. Real estate shares slumped following the decision, with Zillow and Compass both sinking by more than 13%. Real estate brokerage Redfin declined by 5%.
The post Ending of Sales Commission Expected to Boost Homebuying appeared first on theprimarymarket.com.
]]>The post U.S. Homeowners Remain In Homes Longer Than They Did 20 Years Ago appeared first on theprimarymarket.com.
]]>This trend is leading to a shortage of home inventory, with the prospect of higher mortgage rates dissuading homeowners from parting ways with their existing homes. According to the National Association of Realtors, existing home sales hit a 30-year low last year, a testament to this “lock-in” effect where homeowners refuse to let go of their cheaper mortgage rates.
Of those born between 1946 and 1964, 40% have remained in their homes for at least 20 years, Redfin found. A further 16% have been in their current homes for 10 to 19 years. According to the study, this appears to be a generational trend rather than a broader market one, with only around 7% of millennials staying in their homes for 10 years or longer.
The post U.S. Homeowners Remain In Homes Longer Than They Did 20 Years Ago appeared first on theprimarymarket.com.
]]>The post U.S. Homebuilding Slumps Amid Cold Weather Conditions 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.
]]>The post Existing Home Sales Fall to Slowest Pace in 30 Years 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.
]]>The post UK Property on Course for Record Affordability 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.
]]>The post U.S. Homebuilders More Confident as Interest Rates Ease appeared first on theprimarymarket.com.
]]>“With mortgage rates down roughly 50 basis points over the past month, builders are reporting an uptick in traffic as some prospective buyers who previously felt priced out of the market are taking a second look,” NAHB Chairwoman Alicia Huey observed, reflecting on the easing market conditions.
In October, the average rate for the 30-year fixed-rate mortgage surged to a two-decade high of 7.9% before retreating to 7.07% last week, data from the Mortgage Bankers Association showed. This is another sign of easing inflation, with investors becoming more confident that the Federal Reserve will cut interest rates early in 2024.
The post U.S. Homebuilders More Confident as Interest Rates Ease appeared first on theprimarymarket.com.
]]>The post 30-Year Mortgage Rate Retreats to September Level appeared first on theprimarymarket.com.
]]>15-year new purchase loans also declined, falling by three basis points to 6.85%; their lowest level since August. It’s also a decline from the 7.59% peak reached in August, which is the highest average level since 2000. The 30-year average fell even further, declining by 12 basis points to 6.69%; its lowest level since August as well.
Refinancing rate averages also declined, with the exception of the 30-year refinancing rate. The 30-year refi average surged higher by 20 basis points; a colossal 68 basis points higher than the 30-year new purchase rate.
The post 30-Year Mortgage Rate Retreats to September Level appeared first on theprimarymarket.com.
]]>The post Homebuyers Rely Increasingly Less on Down Payment Loans appeared first on theprimarymarket.com.
]]>With prices and mortgage rates continuing to simmer, experts explain that the current market is composed of high-income buyers who are financially self-sufficient. “Just among all buyers, they tend to be wealthier. We’re seeing that especially in the current market, [buyers] might need to have that extra income just to be able to get into the homeownership market,” Brandi Snowden, the NAR’s director of member and consumer survey research explained.
Data from Realtor.com indicated that the percentage share of down payment to home price rose to 14.71% in the third quarter of 2023; the highest level in the past 10 years.
The post Homebuyers Rely Increasingly Less on Down Payment Loans appeared first on theprimarymarket.com.
]]>The post Home Improvement Spending to Tank Amid High Interest Rates appeared first on theprimarymarket.com.
]]>Data from the National Association of Home Builders (NAHB) showed that home remodeler confidence fell during the third quarter. “While there is still demand for remodeling, we are seeing some customers pull back a bit, especially for larger projects, due to higher prices and increased interest rates,” NAHB Remodelers Chair Alan Archuleta observed.
Over the course of 2020 and 2021, the pandemic pushed interest in home improvement upward, especially with people spending more time in their homes. That interest has since started to return to pre-pandemic levels.
The post Home Improvement Spending to Tank Amid High Interest Rates appeared first on theprimarymarket.com.
]]>