Housing inventory

Sales of previously owned US homes fell in June to a nine-month low as potential buyers continued to bristle at record prices and high borrowing costs.

Horton shares surged as much as 14% after the company released results for the fiscal third quarter, the biggest intraday gain since April 2020.

Housing supply is returning to pre-pandemic levels, but the rise comes as new listings fall, pointing to subdued demand, leading real estate brokerages said.

New residential construction increased 4.6% to an annualized rate of 1.32 million homes last month, picking up after an almost 10% slide in May, according to government figures released Friday.

A labor shortage is costing the market tens of thousands of new homes per year, and tariff uncertainty is adding thousands of dollars in expenses per unit.

US purchases of new homes fell in May by the most in almost three years as rampant sales incentives fell short of alleviating affordability constraints.

The resale market looks set to languish for the foreseeable future without some letup in financing costs or downturn in prices.

Previous predictions of a "silver tsunami" that might add essential housing supply are ebbing as senior citizens see benefits of aging in place, Redfin said.

Confidence among US homebuilders fell to the lowest level since December 2022 in June, with potential buyers deterred by high mortgage rates and anxiety about tariffs and the economy. 

Housing permits fell for the fourth consecutive month as builders pull back on construction amid high costs and uncertain demand.

But improved for-sale supply is providing buyers with more options and helping to keep softer price pressures for those looking to buy, writes Cotality's Chief Economist.

Wall Street is cranking up the bond machine as US homeowners, finding that buying a new house is out of reach since mortgage rates started climbing in 2022, are instead getting home equity loans and sprucing up their current properties.

The publicly traded firm said it anticipates more deals after making its first loan to a developer for $32.7 million, which will support 156 homes in Houston.

The combined prices of properties on the market for more than 60 days currently make up close to half of total unsold dollar volume, according to Redfin.

Pending sales of previously owned US homes last month fell by the most since September 2022, illustrating a disappointing spring selling season as prospective buyers balk at high asking prices and borrowing costs. 

The run-up in prices since the pandemic, and mortgage rates hovering near 7%, have squeezed affordability for house hunters, pushing many to the sidelines.

Housing starts increased in April as a pickup in multifamily home construction more than offset a decline in single-family dwellings caused by elevated inventory.

A growing supply of unsold inventory applied downward pressure on prices, offering home buyers some relief, the Mortgage Bankers Association said.

The builder reported increased revenue from a year ago, with profits near par, as it sets to absorb new acquisitions across different lines of business.

As the lock-in effect deters many current homeowners from buying, the housing market is seeing younger clients stepping in, often with government-backed loans.