Sign up to save your podcasts
Or
Share "The Shifting Tides of the US Housing Market: Navigating Buyer-Seller Dynamics and Affordability Challenges"
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
"The Shifting Tides of the US Housing Market: Navigating Buyer-Seller Dynamics and Affordability Challenges"
The US housing industry has entered a new phase over the past 48 hours, marked by a jump in inventory and growing challenges for both buyers and sellers. According to Zillow, housing inventory reached a five-year high in June with 1.36 million homes for sale, up 17.2 percent year over year. This has led to more choices and increased bargaining power for buyers, with 26.6 percent of listings seeing price cuts—the highest share for June on record since 2018. Despite these changes, affordability remains a major hurdle, especially for first-time buyers, due to persistently high mortgage rates hovering around 7 percent and stagnating wages.
The landscape is increasingly neutral, meaning neither buyers nor sellers hold clear advantage. The pressure on sellers is growing, particularly in the South and West, where both supply and time on market have exceeded pre-pandemic levels. However, many sellers prefer to withdraw their listings instead of lowering prices, leading to delistings that have skyrocketed 35 percent year to date, outpacing inventory growth. This approach is enabled by historically high home equity, granting flexibility to wait out the market rather than settle for lower offers.
More buyers are abandoning deals at record rates. Redfin data shows more than 57,000 home purchase cancellations in June, equal to nearly 15 percent of contracts—an all-time high for that month going back to 2017. New home prices are also beginning to fall, especially in major Sunbelt markets, as builders counter weak demand and affordability issues by cutting prices or building farther from urban centers.
Rent growth continues, with national rents up 3.1 percent year over year, narrowing the gap between owning and renting and driving younger buyers to remain renters. Builders, facing rising costs and softening demand, are increasingly slashing new home prices, with 38 percent reporting reductions this July, up from 34 percent in May.
While leading analysts do not foresee a nationwide housing crash, most expect a period of subdued or flat price growth, increased regional volatility, and a slow return to sustainable stability. The housing market, once a driver of economic growth, is now expected to act as a headwind through late 2025, raising the risk of broader economic slowdown.
For great deals today, check out https://amzn.to/44ci4hQ
The landscape is increasingly neutral, meaning neither buyers nor sellers hold clear advantage. The pressure on sellers is growing, particularly in the South and West, where both supply and time on market have exceeded pre-pandemic levels. However, many sellers prefer to withdraw their listings instead of lowering prices, leading to delistings that have skyrocketed 35 percent year to date, outpacing inventory growth. This approach is enabled by historically high home equity, granting flexibility to wait out the market rather than settle for lower offers.
More buyers are abandoning deals at record rates. Redfin data shows more than 57,000 home purchase cancellations in June, equal to nearly 15 percent of contracts—an all-time high for that month going back to 2017. New home prices are also beginning to fall, especially in major Sunbelt markets, as builders counter weak demand and affordability issues by cutting prices or building farther from urban centers.
Rent growth continues, with national rents up 3.1 percent year over year, narrowing the gap between owning and renting and driving younger buyers to remain renters. Builders, facing rising costs and softening demand, are increasingly slashing new home prices, with 38 percent reporting reductions this July, up from 34 percent in May.
While leading analysts do not foresee a nationwide housing crash, most expect a period of subdued or flat price growth, increased regional volatility, and a slow return to sustainable stability. The housing market, once a driver of economic growth, is now expected to act as a headwind through late 2025, raising the risk of broader economic slowdown.
For great deals today, check out https://amzn.to/44ci4hQ
View all episodes
By Quiet. PleaseThe US housing industry has entered a new phase over the past 48 hours, marked by a jump in inventory and growing challenges for both buyers and sellers. According to Zillow, housing inventory reached a five-year high in June with 1.36 million homes for sale, up 17.2 percent year over year. This has led to more choices and increased bargaining power for buyers, with 26.6 percent of listings seeing price cuts—the highest share for June on record since 2018. Despite these changes, affordability remains a major hurdle, especially for first-time buyers, due to persistently high mortgage rates hovering around 7 percent and stagnating wages.
The landscape is increasingly neutral, meaning neither buyers nor sellers hold clear advantage. The pressure on sellers is growing, particularly in the South and West, where both supply and time on market have exceeded pre-pandemic levels. However, many sellers prefer to withdraw their listings instead of lowering prices, leading to delistings that have skyrocketed 35 percent year to date, outpacing inventory growth. This approach is enabled by historically high home equity, granting flexibility to wait out the market rather than settle for lower offers.
More buyers are abandoning deals at record rates. Redfin data shows more than 57,000 home purchase cancellations in June, equal to nearly 15 percent of contracts—an all-time high for that month going back to 2017. New home prices are also beginning to fall, especially in major Sunbelt markets, as builders counter weak demand and affordability issues by cutting prices or building farther from urban centers.
Rent growth continues, with national rents up 3.1 percent year over year, narrowing the gap between owning and renting and driving younger buyers to remain renters. Builders, facing rising costs and softening demand, are increasingly slashing new home prices, with 38 percent reporting reductions this July, up from 34 percent in May.
While leading analysts do not foresee a nationwide housing crash, most expect a period of subdued or flat price growth, increased regional volatility, and a slow return to sustainable stability. The housing market, once a driver of economic growth, is now expected to act as a headwind through late 2025, raising the risk of broader economic slowdown.
For great deals today, check out https://amzn.to/44ci4hQ
The landscape is increasingly neutral, meaning neither buyers nor sellers hold clear advantage. The pressure on sellers is growing, particularly in the South and West, where both supply and time on market have exceeded pre-pandemic levels. However, many sellers prefer to withdraw their listings instead of lowering prices, leading to delistings that have skyrocketed 35 percent year to date, outpacing inventory growth. This approach is enabled by historically high home equity, granting flexibility to wait out the market rather than settle for lower offers.
More buyers are abandoning deals at record rates. Redfin data shows more than 57,000 home purchase cancellations in June, equal to nearly 15 percent of contracts—an all-time high for that month going back to 2017. New home prices are also beginning to fall, especially in major Sunbelt markets, as builders counter weak demand and affordability issues by cutting prices or building farther from urban centers.
Rent growth continues, with national rents up 3.1 percent year over year, narrowing the gap between owning and renting and driving younger buyers to remain renters. Builders, facing rising costs and softening demand, are increasingly slashing new home prices, with 38 percent reporting reductions this July, up from 34 percent in May.
While leading analysts do not foresee a nationwide housing crash, most expect a period of subdued or flat price growth, increased regional volatility, and a slow return to sustainable stability. The housing market, once a driver of economic growth, is now expected to act as a headwind through late 2025, raising the risk of broader economic slowdown.
For great deals today, check out https://amzn.to/44ci4hQ