Home prices

By leveraging establishing relationships and engaging stakeholders, mortgage companies can play a part in alleviating the home availability and affordability strain, writes the president and CEO of the Federal Home Loan Bank of San Francisco.

Prices are starting to fall in one of the most expensive cities in the U.S. but they are still much higher than their pre-pandemic levels.

Even with another annual surge of over 20%, the pace of home-price growth eased in May and experts anticipate even further moderation over the next year.

While those born between 1946 and 1964 have largely chosen to age in place, their eventual home downsizing or passing is not likely to result in a large burst of inventory entering the market, according to a report from the MBA's Research Institute for Housing America.

High mortgage rates and high prices are starting to slow down the market. Still, tight inventory is keeping values high.

Contract closings decreased 3.4% in May from the prior month to an annualized 5.41 million, the weakest since June 2020, figures from the National Association of Realtors showed Tuesday.

Property prices could contract an annual 5% by the middle of next year, a senior property economist, said in a research note Monday. He’d previously projected no change in values by that time.

But even with bidding wars on the decline and inventory increasing, listing prices continue to creep up.

At the same time, the share of new properties acquired by the services dropped, reflecting overall purchase trends and Zillow’s exit from the market.

But it's far too early to declare the market to be down and out, especially as employment stays strong and mortgage rates stabilize.