Real Estate Blog

Why the Housing Market Is Slumping Despite a Booming Economy

Home prices are out of reach relative to incomes and mortgage rates. The big question for the economy is how the imbalance adjusts.

A sign pointed to an open house in Waukee, Iowa, earlier this year. Housing sales have slowed in recent months.       A sign pointed to an open house in Waukee, Iowa, earlier this year. Housing sales have slowed in recent months.

These should be happy times for the housing sector. The economy is booming, with more people working at higher pay, and with the sizable millennial generation reaching prime home buying age.

Instead, the housing market has gone soft, acting as a drag on the

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Housing starts to decline in 2019 but demand will also ease

HomeMarket Update by Steve Randall28 Oct 2018 Housing starts to decline in 2019 but demand will also ease

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America's housing market is booming with home prices nationwide now back to where they were a decade ago, just before the financial crisis.

US housing starts are set to ease in 2019 but demand is also expected to weaken.

That’s according to Dodge Data Analytics which forecasts that single-family housing starts will be down 3% in unit terms to 815,000 (Dodge basis) but unchanged in dollar terms.

Rising mortgage rates, lower affordability, and reduced benefits from tax cuts introduced this year, will mean slightly lower demand for newly-built homes.

Meanwhile, in the multifamily sector Dodge

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U.S. Pending Home Sales Fell 1.8% in August

    Housing Sales Decline As Market CoolsTim Boyle/Getty Images

WASHINGTON—The number of U.S. existing homes going under contract declined in August for the fourth time in five months, reflecting what appears to be a broader slowdown in the housing market.

The National Association of Realtors on Thursday said its pending home-sales index, which tracks contract signings for purchases of previously owned homes, fell 1.8% from the prior month to 104.2 in August. Sales, unless they fall through, typically close within a month or two of signing.

Economists surveyed by The Wall Street Journal had expected a 0.4% decline in August.

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Home buyers, sellers have had enough of high prices

HomeMarket Update by Steve Randall08 Aug 2018 Home buyers, sellers have had enough of high prices

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  • Housing boom is back... but without the bubble

    America's housing market is booming with home prices nationwide now back to where they were a decade ago, just before the financial crisis

  • Customers say these are the top mortgage lenders

    LendingTree’s quarterly list is based on reviews

A measure of sentiment in the housing market has dropped for the second straight month.

Fannie Mae’s Housing Purchase Sentiment Index was down 4.2 points in July to 86.5 after declining in June but reaching record highs in April and May.

And it’s not just buyers that are tiring of a lack of inventory and

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The U.S. Housing Market Looks Headed for Its Worst Slowdown in Years

     

In this photo made on Wednesday, Sept. 10, 2014, signs welcome visitors to a model home as construction is under way at a housing development in Zelienople, Pa.© Keith Srakocic/AP Photo In this photo made on Wednesday, Sept. 10, 2014, signs welcome visitors to a model home as construction is under way at a housing development in Zelienople, Pa.They were fed up with Seattle’s home bidding wars. They were only in their late 20s but had already lost two battles and were ready to renew with their landlord. Then, in May, their agent called.

Suddenly, Redfin’s Shoshana Godwin told the couple, sellers were getting jumpy, even here in the hottest of markets. Homes that should have vanished in days were sitting on the market for weeks. There was a three-bedroom fixer-upper just north of the city going

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Millennials want to buy homes, but rising prices hold them back

HomeNews by Francis Monfort14 May 2018
  • While it is true that a timeshare contract is a binding legal document, it is often mistakenly thought that such a contract cannot only be cancelled. In fact, most timeshare companies maintain that their contracts are non – cancellable. This misconception is perpetuated by timeshare companies and user groups that are funded, maintained and controlled by the timeshare industry.

  • The FHA 203k loan program provides home buyers the opportunity to buy and fix up a property, without exhausting their personal savings.

A majority of millennials already have plans to buy a home, but they continue to face

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Millenials Will Spend 45% of Income On Rent Before Age 30

As rent prices continue to rise, a new study shows Millennials are paying about 45% of their total income toward rent, and pay out close to $100,000 toward rent before they turn 30.

Analyzing U.S. Census Bureau data going back as far as 1974, a new study from RentCafé found that Millennials have been the hardest generation for those ages 22 to 30. And the future does not look bright for Generation Z.

As it turns out, Millennials pay about $92,600 in rent by the time they turn 30. While they may earn more in income compared to previous generations, they also have to spend more on rent, the study showed.

During that same age span, from 22 to 30, Gen Xers paid an average $82,200 and Baby

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Home Sales Tumble as Mortgage Rates March Upward

Sales of newly built single-family homes took an unexpected tumble last month as rising mortgage rates took a toll.

Sales of new homes fell 7.8% in January to a seasonally adjusted annual rate of 593,000 units, according the data from the Department of Housing and Urban Development and the Census Bureau.

“The moderation in new home sales may be attributable to the interest-rate environment, which could be causing short-term market volatility,” said Michael Neal, senior economist for the National Association of Home Builders. “However, the underlying economic fundamentals for housing demand remain strong, and we expect more prospective homebuyers to enter the market in 2018.”

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Pending home sales cool to 3-year low

HomeMarket Update by Steve Randall01 Mar 2018 Pending home sales cool to 3-year low The spring homebuying season may be long gone but that doesn’t mean first-time buyers should wait another 6 months to start looking

The winter freeze hit the housing market in January with pending sales reversing a three-month upward trend.

The National Association of Realtors says that all major regions saw a drop in contract signings on both a monthly and annual basis.

NAR’s Pending Home Sales Index was down 4.7% in January compared to December, and at a reading of 104.6 is 3.8% below January 2017 and at its lowest level since October 2014 (104.1).

Mortgage rates rising, and the stubbornly low inventory of available homes was to

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Buy a Home Sight Unseen? More Common Then You Think

The competitive nature of many US housing markets is driving buyers to make some snap decisions.

That includes bidding on homes before they’ve even had a chance to view them in person according to a new survey of more than 1,000 recent homebuyers by Redfin.

It found that 35% of those who bought a home in the last 12 months made a bid without seeing their intended new home in person; up from 33% a year ago. In 2016, just 19% of buyers did this.

Among young buyers, sight unseen is even more prolific with 45% making a potentially risky move.

This could be, Redfin suggests, because Millennials are more trusting of the information they find online about homes, neighborhoods, and the homebuying

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