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US Housing Market Cautiously Stabilizing Amid Supply and Affordability Concerns - Podcast Episode
The US housing industry in the past 48 hours reflects a cautiously improving market, with signs of regional recovery and structural transformation but ongoing affordability and supply concerns.
The standout trend for early September 2025 is stabilization. Median home prices have been flat for three consecutive weeks, following a period of growth but now trailing the current inflation rate. For the first time in years, home prices are failing to keep pace with inflation. The S&P Cotality Case-Shiller data shows US home values dipped 0.3 percent in June, and the 20-city index rose just 2.1 percent year over year, well below the 2.7 percent increase in consumer prices. This compares to prior years when home price inflation dramatically outpaced overall inflation, creating wealth for homeowners, but now signals stagnant real returns for new buyers and sellers alike.
Inventory is another pivotal issue. There are about 1.1 million properties listed for sale, the 17th consecutive week above the million mark. However, growth in new listings has slowed as frustrated sellers and cautious buyers sit out, leading to slower inventory growth. Homes are lingering longer on the market, with months of supply for new homes at 9.2, well above the typical 4 to 6 months. New single-family home sales are down 8.2 percent from July 2024 but were revised up for the previous three months, signaling some underlying strength.
Mortgage rates are hovering around 6.56 percent for a 30-year fixed loan, but financial markets anticipate a Federal Reserve rate cut as early as September, which could bring modest relief for buyers and potentially reignite some activity. Still, rates are not expected to fall back to 2010s lows.
Smaller homes are becoming more common as affordability gaps widen and construction costs rise. The average US home is now 1,800 square feet, down 6 percent since 2016. Developers are increasingly turning to modular construction and accessory dwelling units to manage costs and accelerate supply. Some leaders in the industry are targeting undervalued markets with low price-to-income ratios, such as Buffalo and Pittsburgh, or pivoting to specialized property types like data centers and workforce housing.
Comparing these conditions to previous years, the market shift is clear from boom to cautious recalibration, with the South and West under more pressure due to elevated inventory, while the Northeast and Midwest see slight appreciation as demand holds.
Overall, the US housing industry is in transition, showing resilience through innovative responses but challenged by stagnant pricing and uneven recovery.
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI
The standout trend for early September 2025 is stabilization. Median home prices have been flat for three consecutive weeks, following a period of growth but now trailing the current inflation rate. For the first time in years, home prices are failing to keep pace with inflation. The S&P Cotality Case-Shiller data shows US home values dipped 0.3 percent in June, and the 20-city index rose just 2.1 percent year over year, well below the 2.7 percent increase in consumer prices. This compares to prior years when home price inflation dramatically outpaced overall inflation, creating wealth for homeowners, but now signals stagnant real returns for new buyers and sellers alike.
Inventory is another pivotal issue. There are about 1.1 million properties listed for sale, the 17th consecutive week above the million mark. However, growth in new listings has slowed as frustrated sellers and cautious buyers sit out, leading to slower inventory growth. Homes are lingering longer on the market, with months of supply for new homes at 9.2, well above the typical 4 to 6 months. New single-family home sales are down 8.2 percent from July 2024 but were revised up for the previous three months, signaling some underlying strength.
Mortgage rates are hovering around 6.56 percent for a 30-year fixed loan, but financial markets anticipate a Federal Reserve rate cut as early as September, which could bring modest relief for buyers and potentially reignite some activity. Still, rates are not expected to fall back to 2010s lows.
Smaller homes are becoming more common as affordability gaps widen and construction costs rise. The average US home is now 1,800 square feet, down 6 percent since 2016. Developers are increasingly turning to modular construction and accessory dwelling units to manage costs and accelerate supply. Some leaders in the industry are targeting undervalued markets with low price-to-income ratios, such as Buffalo and Pittsburgh, or pivoting to specialized property types like data centers and workforce housing.
Comparing these conditions to previous years, the market shift is clear from boom to cautious recalibration, with the South and West under more pressure due to elevated inventory, while the Northeast and Midwest see slight appreciation as demand holds.
Overall, the US housing industry is in transition, showing resilience through innovative responses but challenged by stagnant pricing and uneven recovery.
For great deals today, check out https://amzn.to/44ci4hQ
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 in the past 48 hours reflects a cautiously improving market, with signs of regional recovery and structural transformation but ongoing affordability and supply concerns.
The standout trend for early September 2025 is stabilization. Median home prices have been flat for three consecutive weeks, following a period of growth but now trailing the current inflation rate. For the first time in years, home prices are failing to keep pace with inflation. The S&P Cotality Case-Shiller data shows US home values dipped 0.3 percent in June, and the 20-city index rose just 2.1 percent year over year, well below the 2.7 percent increase in consumer prices. This compares to prior years when home price inflation dramatically outpaced overall inflation, creating wealth for homeowners, but now signals stagnant real returns for new buyers and sellers alike.
Inventory is another pivotal issue. There are about 1.1 million properties listed for sale, the 17th consecutive week above the million mark. However, growth in new listings has slowed as frustrated sellers and cautious buyers sit out, leading to slower inventory growth. Homes are lingering longer on the market, with months of supply for new homes at 9.2, well above the typical 4 to 6 months. New single-family home sales are down 8.2 percent from July 2024 but were revised up for the previous three months, signaling some underlying strength.
Mortgage rates are hovering around 6.56 percent for a 30-year fixed loan, but financial markets anticipate a Federal Reserve rate cut as early as September, which could bring modest relief for buyers and potentially reignite some activity. Still, rates are not expected to fall back to 2010s lows.
Smaller homes are becoming more common as affordability gaps widen and construction costs rise. The average US home is now 1,800 square feet, down 6 percent since 2016. Developers are increasingly turning to modular construction and accessory dwelling units to manage costs and accelerate supply. Some leaders in the industry are targeting undervalued markets with low price-to-income ratios, such as Buffalo and Pittsburgh, or pivoting to specialized property types like data centers and workforce housing.
Comparing these conditions to previous years, the market shift is clear from boom to cautious recalibration, with the South and West under more pressure due to elevated inventory, while the Northeast and Midwest see slight appreciation as demand holds.
Overall, the US housing industry is in transition, showing resilience through innovative responses but challenged by stagnant pricing and uneven recovery.
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI
The standout trend for early September 2025 is stabilization. Median home prices have been flat for three consecutive weeks, following a period of growth but now trailing the current inflation rate. For the first time in years, home prices are failing to keep pace with inflation. The S&P Cotality Case-Shiller data shows US home values dipped 0.3 percent in June, and the 20-city index rose just 2.1 percent year over year, well below the 2.7 percent increase in consumer prices. This compares to prior years when home price inflation dramatically outpaced overall inflation, creating wealth for homeowners, but now signals stagnant real returns for new buyers and sellers alike.
Inventory is another pivotal issue. There are about 1.1 million properties listed for sale, the 17th consecutive week above the million mark. However, growth in new listings has slowed as frustrated sellers and cautious buyers sit out, leading to slower inventory growth. Homes are lingering longer on the market, with months of supply for new homes at 9.2, well above the typical 4 to 6 months. New single-family home sales are down 8.2 percent from July 2024 but were revised up for the previous three months, signaling some underlying strength.
Mortgage rates are hovering around 6.56 percent for a 30-year fixed loan, but financial markets anticipate a Federal Reserve rate cut as early as September, which could bring modest relief for buyers and potentially reignite some activity. Still, rates are not expected to fall back to 2010s lows.
Smaller homes are becoming more common as affordability gaps widen and construction costs rise. The average US home is now 1,800 square feet, down 6 percent since 2016. Developers are increasingly turning to modular construction and accessory dwelling units to manage costs and accelerate supply. Some leaders in the industry are targeting undervalued markets with low price-to-income ratios, such as Buffalo and Pittsburgh, or pivoting to specialized property types like data centers and workforce housing.
Comparing these conditions to previous years, the market shift is clear from boom to cautious recalibration, with the South and West under more pressure due to elevated inventory, while the Northeast and Midwest see slight appreciation as demand holds.
Overall, the US housing industry is in transition, showing resilience through innovative responses but challenged by stagnant pricing and uneven recovery.
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI