Home prices

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.

In May, buyers in 15 of the 100 largest housing markets paid more than 50% over historic trends, up from 13 in April and 2 in July 2021, a study found.

The S&P CoreLogic Case-Shiller index recorded its strongest ever annual gain for March as housing market conditions remained highly competitive in the first quarter.

Several Sun Belt cities popular for relocation over the last two years were among markets with the most reduced listing prices in April.

Mortgage payments are claiming a bigger chunk of incomes for U.S. homebuyers, who also have to contend with quickly rising prices.

The U.S. economy unexpectedly shrank last quarter for the first time since 2020 as the trade deficit ballooned, adding to political headaches for President Joe Biden but unlikely to sway the Federal Reserve from hiking interest rates aggressively to combat inflation.

While housing costs continued to set records, several signs of moderation have begun to appear in the last several weeks, according to Redfin.

The steep ascent in borrowing costs, combined with high home prices across markets, is sidelining more prospective buyers.

But the amount relative to housing costs actually decreased from the previous year.

Recent affordability and interest rate trends led to “clear evidence” of discouragement among potential consumers in the purchase market in the first three months of 2022, according to the National Association of Home Builders.

One Cupertino broker noted a small shift in the market, with buyers being more particular and willing to back out of deals.

First American’s Real House Price Index showed a record increase, reflecting both elevated home prices and fast-rising interest rates.

Sales of previously owned U.S. homes fell in March to the lowest since June 2020 as historically low inventory paired with rising mortgage rates curbed purchases.

Researchers at the government-sponsored enterprise noted the role rising rates are playing in increasing housing costs in its report, now offered publicly for the first time.

Nationally, prices jumped 19.2%, the fourth-biggest jump in data going back 35 years.

Federal Reserve Governor Christopher Waller said longer-run structural issues will continue to put upward pressure on home prices and rents even as the central bank begins a campaign to raise borrowing costs.

Sales of new U.S. homes fell in February for a second month, suggesting high prices and rising mortgage rates may be keeping prospective buyers on the sidelines.