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"Housing Trends in Flux: Existing Sales Surge, New Builds Lag, Affordability Concerns Linger"
The US housing industry is currently experiencing a mixed bag of trends, indicating a market in transition. Recent data from the past week reveals several key shifts in consumer behavior, price changes, and supply chain developments.
Firstly, existing-home sales have shown a significant uptick. According to the National Association of Realtors, existing-home sales rose to a seasonally adjusted rate of 4.15 million in November 2024, the swiftest pace since March[2]. This represents a 6.1% increase from one year ago, the largest year-over-year gain since June 2021.
However, new home sales have not followed the same trajectory. The U.S. Census Bureau reported that new home sales fell sharply in October to an annual rate of 610,000, the lowest level since November 2022[1]. This decline was partly attributed to the negative effects of hurricanes Helene and Milton on home sales in the south.
In terms of inventory, there has been a notable increase in active listings. Realtor.com data shows a 23.4% jump in active listings compared to this time last year, marking the 58th consecutive week of growth[4]. However, this growth is the slowest since March 2024, indicating a potential stabilization in the market.
Mortgage rates have remained elevated, averaging 6.81% in November, which has kept potential homeowners waiting for affordability to improve[1]. Despite this, there was a slight uptick in purchase activity as potential homebuyers reacted to the modest decrease in rates. Purchase applications were up 23.5% in the last week of November compared to the last week in October.
Home prices have continued to moderate, with the FHFA House Price Index showing a 0.7% month-over-month increase and a 4.4% year-over-year increase in September 2024[1]. This slowdown in price appreciation is partly due to increased supply and declining but still high mortgage rates.
Industry leaders are responding to current challenges by focusing on affordability and inventory. For example, the City of Boise is addressing its housing crisis by quantifying the supply and demand for housing within city limits. The analysis reveals that the city requires 2,770 units every year for the next 10 years to meet demand, with 77% of this demand being for housing affordable to those earning 80% or less of the area median income[3].
In conclusion, the US housing industry is navigating a complex landscape of rising interest rates, moderating home prices, and shifting consumer behavior. While existing-home sales have shown resilience, new home sales and construction have slowed. Industry leaders are working to address affordability and inventory challenges, but the market remains in a state of transition.
This content was created in partnership and with the help of Artificial Intelligence AI
Firstly, existing-home sales have shown a significant uptick. According to the National Association of Realtors, existing-home sales rose to a seasonally adjusted rate of 4.15 million in November 2024, the swiftest pace since March[2]. This represents a 6.1% increase from one year ago, the largest year-over-year gain since June 2021.
However, new home sales have not followed the same trajectory. The U.S. Census Bureau reported that new home sales fell sharply in October to an annual rate of 610,000, the lowest level since November 2022[1]. This decline was partly attributed to the negative effects of hurricanes Helene and Milton on home sales in the south.
In terms of inventory, there has been a notable increase in active listings. Realtor.com data shows a 23.4% jump in active listings compared to this time last year, marking the 58th consecutive week of growth[4]. However, this growth is the slowest since March 2024, indicating a potential stabilization in the market.
Mortgage rates have remained elevated, averaging 6.81% in November, which has kept potential homeowners waiting for affordability to improve[1]. Despite this, there was a slight uptick in purchase activity as potential homebuyers reacted to the modest decrease in rates. Purchase applications were up 23.5% in the last week of November compared to the last week in October.
Home prices have continued to moderate, with the FHFA House Price Index showing a 0.7% month-over-month increase and a 4.4% year-over-year increase in September 2024[1]. This slowdown in price appreciation is partly due to increased supply and declining but still high mortgage rates.
Industry leaders are responding to current challenges by focusing on affordability and inventory. For example, the City of Boise is addressing its housing crisis by quantifying the supply and demand for housing within city limits. The analysis reveals that the city requires 2,770 units every year for the next 10 years to meet demand, with 77% of this demand being for housing affordable to those earning 80% or less of the area median income[3].
In conclusion, the US housing industry is navigating a complex landscape of rising interest rates, moderating home prices, and shifting consumer behavior. While existing-home sales have shown resilience, new home sales and construction have slowed. Industry leaders are working to address affordability and inventory challenges, but the market remains in a state of transition.
This content was created in partnership and with the help of Artificial Intelligence AI
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By Inception Point AiThe US housing industry is currently experiencing a mixed bag of trends, indicating a market in transition. Recent data from the past week reveals several key shifts in consumer behavior, price changes, and supply chain developments.
Firstly, existing-home sales have shown a significant uptick. According to the National Association of Realtors, existing-home sales rose to a seasonally adjusted rate of 4.15 million in November 2024, the swiftest pace since March[2]. This represents a 6.1% increase from one year ago, the largest year-over-year gain since June 2021.
However, new home sales have not followed the same trajectory. The U.S. Census Bureau reported that new home sales fell sharply in October to an annual rate of 610,000, the lowest level since November 2022[1]. This decline was partly attributed to the negative effects of hurricanes Helene and Milton on home sales in the south.
In terms of inventory, there has been a notable increase in active listings. Realtor.com data shows a 23.4% jump in active listings compared to this time last year, marking the 58th consecutive week of growth[4]. However, this growth is the slowest since March 2024, indicating a potential stabilization in the market.
Mortgage rates have remained elevated, averaging 6.81% in November, which has kept potential homeowners waiting for affordability to improve[1]. Despite this, there was a slight uptick in purchase activity as potential homebuyers reacted to the modest decrease in rates. Purchase applications were up 23.5% in the last week of November compared to the last week in October.
Home prices have continued to moderate, with the FHFA House Price Index showing a 0.7% month-over-month increase and a 4.4% year-over-year increase in September 2024[1]. This slowdown in price appreciation is partly due to increased supply and declining but still high mortgage rates.
Industry leaders are responding to current challenges by focusing on affordability and inventory. For example, the City of Boise is addressing its housing crisis by quantifying the supply and demand for housing within city limits. The analysis reveals that the city requires 2,770 units every year for the next 10 years to meet demand, with 77% of this demand being for housing affordable to those earning 80% or less of the area median income[3].
In conclusion, the US housing industry is navigating a complex landscape of rising interest rates, moderating home prices, and shifting consumer behavior. While existing-home sales have shown resilience, new home sales and construction have slowed. Industry leaders are working to address affordability and inventory challenges, but the market remains in a state of transition.
This content was created in partnership and with the help of Artificial Intelligence AI
Firstly, existing-home sales have shown a significant uptick. According to the National Association of Realtors, existing-home sales rose to a seasonally adjusted rate of 4.15 million in November 2024, the swiftest pace since March[2]. This represents a 6.1% increase from one year ago, the largest year-over-year gain since June 2021.
However, new home sales have not followed the same trajectory. The U.S. Census Bureau reported that new home sales fell sharply in October to an annual rate of 610,000, the lowest level since November 2022[1]. This decline was partly attributed to the negative effects of hurricanes Helene and Milton on home sales in the south.
In terms of inventory, there has been a notable increase in active listings. Realtor.com data shows a 23.4% jump in active listings compared to this time last year, marking the 58th consecutive week of growth[4]. However, this growth is the slowest since March 2024, indicating a potential stabilization in the market.
Mortgage rates have remained elevated, averaging 6.81% in November, which has kept potential homeowners waiting for affordability to improve[1]. Despite this, there was a slight uptick in purchase activity as potential homebuyers reacted to the modest decrease in rates. Purchase applications were up 23.5% in the last week of November compared to the last week in October.
Home prices have continued to moderate, with the FHFA House Price Index showing a 0.7% month-over-month increase and a 4.4% year-over-year increase in September 2024[1]. This slowdown in price appreciation is partly due to increased supply and declining but still high mortgage rates.
Industry leaders are responding to current challenges by focusing on affordability and inventory. For example, the City of Boise is addressing its housing crisis by quantifying the supply and demand for housing within city limits. The analysis reveals that the city requires 2,770 units every year for the next 10 years to meet demand, with 77% of this demand being for housing affordable to those earning 80% or less of the area median income[3].
In conclusion, the US housing industry is navigating a complex landscape of rising interest rates, moderating home prices, and shifting consumer behavior. While existing-home sales have shown resilience, new home sales and construction have slowed. Industry leaders are working to address affordability and inventory challenges, but the market remains in a state of transition.
This content was created in partnership and with the help of Artificial Intelligence AI