Housing affordability

Baby boomers downsizing, millennials entering their prime homebuying years and Gen Zers going for luxe rentals in trendy cities are among the trends to watch.

The merger and the consolidation of the mortgage industry would not only reduce the ability for Latinos to participate in homeownership, the effects could cascade to the overall population writes the CEO of the National Association of Hispanic Real Estate Professionals

But costs are still elevated annually in double-digit ranges for 46% of markets, according to the National Association of Realtors.

Fannie Mae announced a pilot rollout of a new special-purpose credit program, while Freddie Mac said it is expediting review of similar new programs from lenders during the Mortgage Bankers Association conference this week.

Quarterly numbers also show the smallest gain in appreciation since 2011, with values decreasing on an unadjusted basis, according to Fannie Mae.

The number of sellers discounting their original listing grew by over 83% year over year, according to HouseCanary.

The tempering of growth is a result of mortgage rates jumping and inflation, a report found.

Consumer demands for lower density and more affordable prices fueled a larger share of construction outside urban cores, but recent trends have led to slowdowns across the board.

Although housing costs are still far higher than levels from a year ago, monthly data showed prices declined across five U.S. regions in June, and a separate survey indicated almost one-third of sellers had recently slashed prices.

The slowdown also has not been enough to ease affordability in any state given changes in interest rates and incomes, according to research from First American.

In a reversal of 2021 trends, inventory is increasing and price reductions are occurring across cost levels, though less often among the least expensive homes, according to reports from Zillow and Redfin.

Approximately 8% of listings on the market each week are getting a price cut, while the share of offers facing bidding wars fell below 45% in July, the brokerage's latest report found.

The affordability crisis is expanding as Americans move back to big cities and some areas suffer a housing shortage.

At the same time, homes bought with FHA-backed loans accounted for the smallest share since 2007, according to an Attom sales report.

While housing costs were still up nationwide, Pacific states saw the most rapid pace of moderation on an annual basis, a Federal Housing Finance Agency study found.

Home sales were down by 17% in June, while inventory increased over 27%, compared to numbers from one year ago, according to Remax.

The slowdown in new single-family construction is one of several headwinds homebuilders find themselves facing this summer.

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.

Recent data from several organizations further highlights affordability challenges and souring consumer sentiment, while a growing number of economists think the market has peaked.