Housing affordability

Although housing values have noticeably flattened in recent months, the share of buyers expecting the search for a new residence to become harder grew, according to the National Association of Home Builders.

Despite the significant annual increase, home buyers saw signs of affordability returning in the latter months of the year.

Increases in values were more likely to stick across the Central U.S, while pandemic boomtowns experienced the biggest declines in median housing costs, according to Realtor.com.

Prices were up by less than 9% year-over-year, according to CoreLogic's report.

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.

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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.