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.

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.

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.

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.

“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.

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.

What’s more, the new legislation allows 50% of the accessory unit’s rental income for a to-be-built ADU to qualify for a mortgage under the FHA’s renovation home loan. “With our new ADU policy, we’ll help households of more modest means maximize the potential benefits of homeownership to build wealth,” Julia Gordon, assistant secretary for housing announced. “This new policy also contributes to the supply of affordable housing in many neighborhoods where it’s most needed and least available.”

The new provisions are aimed at expanding financing options for new buyers and existing homeowners, and as a result, increasing market activity. This is being done to ease the national housing shortage crisis.

The post Homeowners Get Lending Boost From Rental Units On Property appeared first on theprimarymarket.com.

Several property sector experts have attributed this sales decline to rising mortgage rates. “Mortgage rates have been rising above 7% since August, which has diminished the pool of homebuyers,” Lawrence Yun, NAR chief economist observed. According to Orphe Divounguy, senior economist at Zillow, higher mortgage rates, as well as seasonality, have contributed to falling sales, given that sales usually decline at this time of the year.

According to figures released by Freddie Mac, the 30-year fixed mortgage has risen to 7.23%; the highest since June 2001 when rates hit 7.24%.

The post Home Sales Plummeted in August According to Pending Data appeared first on theprimarymarket.com.

The 30-year mortgage rate jumped to an average of 7.19% last week; its highest level since July 2001 according to data from mortgage finance agency Freddie Mac. Mortgage rates have been increasing on the back of concerns that rising oil prices could sever the Federal Reserve’s fight to combat inflation.

While the central bank decided to leave interest rates unchanged in the region of 5.25%-5.50% at its September meeting, bets are on that the Fed will likely implement another interest rate hike before the end of the year.

The post New Home Sales Plummet in August 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.

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.

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.

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.

“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.

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.

What’s more, the new legislation allows 50% of the accessory unit’s rental income for a to-be-built ADU to qualify for a mortgage under the FHA’s renovation home loan. “With our new ADU policy, we’ll help households of more modest means maximize the potential benefits of homeownership to build wealth,” Julia Gordon, assistant secretary for housing announced. “This new policy also contributes to the supply of affordable housing in many neighborhoods where it’s most needed and least available.”

The new provisions are aimed at expanding financing options for new buyers and existing homeowners, and as a result, increasing market activity. This is being done to ease the national housing shortage crisis.

The post Homeowners Get Lending Boost From Rental Units On Property appeared first on theprimarymarket.com.

Several property sector experts have attributed this sales decline to rising mortgage rates. “Mortgage rates have been rising above 7% since August, which has diminished the pool of homebuyers,” Lawrence Yun, NAR chief economist observed. According to Orphe Divounguy, senior economist at Zillow, higher mortgage rates, as well as seasonality, have contributed to falling sales, given that sales usually decline at this time of the year.

According to figures released by Freddie Mac, the 30-year fixed mortgage has risen to 7.23%; the highest since June 2001 when rates hit 7.24%.

The post Home Sales Plummeted in August According to Pending Data appeared first on theprimarymarket.com.

The 30-year mortgage rate jumped to an average of 7.19% last week; its highest level since July 2001 according to data from mortgage finance agency Freddie Mac. Mortgage rates have been increasing on the back of concerns that rising oil prices could sever the Federal Reserve’s fight to combat inflation.

While the central bank decided to leave interest rates unchanged in the region of 5.25%-5.50% at its September meeting, bets are on that the Fed will likely implement another interest rate hike before the end of the year.

The post New Home Sales Plummet in August appeared first on theprimarymarket.com.