What We Know About Zoomer’s Home Buying Preferences

Millennials are often touted as getting the short stick when it comes to the housing market.  Over the housing boom of the last two years, many Millennials who recently reached prime homebuying age started looking to buy their first home. But high competition and limited inventory have made this a notoriously difficult market for first-time buyers. This has been intensified by rising home prices. As of 2021, the average millennial with a mortgage owed $255,527 in mortgage debt, up 10% from the 2020 average and 16% from 2019. But while Millennials may be the largest buying cohort right now, Gen Z is right on their heels. Gen Z places much stock in the value of owning a home. Nearly 60%…

Home Prices Rose Near Record High In Q2

Annual single-family home prices rose by 19.4% in Q2 2022. This is down from Q1’s upwardly revised 20.5% but still close to a record high, according to Fannie Mae’s latest Home Price Index. On a quarterly basis, home prices increased by 4.3% between Q1 and Q2. “Home prices maintained a near-historic pace of appreciation in the second quarter, as low levels of housing inventory continued to support price growth,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “At the end of 2021 and extending into 2022, we believe many homebuyers pulled forward their purchase plans to avoid expected increases in mortgage rates, contributing to demand for homes and strong price appreciation. Given the sharp rise in mortgage…

May Home Prices Saw Their Largest Single-Month Slowdown Since 2006

Home price growth saw its largest single-month slowdown since 2006 in May as inventory begins to correct, according to Black Knight’s May Mortgage Monitor Report. May was the second straight month of prices cooling across the country. Home price growth slowed in 97 of the U.S.’s 100 largest housing markets. The national appreciation rate fell by more than a whole point YOY. “[W]hile any talk of home values and 2006 might set off alarm bells for some, the truth is that price gains would need to see deceleration at this rate for more than 12 months just to get us back to a ‘normal’ 3-5% annual growth rate,” said Black Knight Data & Analytics President Ben Graboske. “That said, the…

Most Consumers Think The Economy Is On The “Wrong Track”

Most consumers think the economy is on the “wrong track,” growing frustrated as they struggle against inflation and a slowing economy. Fannie Mae’s most recent Home Purchase Sentiment Index (HPSI) fell 3.4 points in June to its lowest reading in ten years, while a survey-high 81% of consumers reported they believe the economy is on “the wrong track.” The full index is down 14.9 points YOY. Four of its six components fell from the month prior. More Americans reported they are worried about losing their jobs in the next twelve months (+5%) and fewer reported their income has significantly increased in the past year (-1%.) For the first time in almost seven years, a plurality of respondents said they would…

Record Share Of Homesellers Slash Prices

Home sellers are slashing prices at a record pace as buyer activity falls off, Redfin reported. The median asking price for newly-listed homes saw decreased acceleration, rising 15% YOY. It is down 1.5% from its all-time high, which it hit in May. At the same time, a record share of sellers cut their asking price in the four-week period ending June 26. Pending home sales saw their biggest drop since May 2020, as evidence emerges that buyer demand is beginning to cool. But Redfin Chief Economist Daryl Fairweather says buyers aren’t done yet. Instead, they’re noticing “the shift in power, and are no longer leaving the market in droves.” That is, buyers are seeing that sellers are losing the upper…

Lumber Prices Are Toppling, But Will Home Prices Come Down With Them?

By CHUCK GREEN With lumber prices toppling, it might be the ideal time to knock on wood. Gently, though. It just might be a bit fragile at the moment. Year to date, prices have sagged around 50%, according to 7seasgroupusa.com. They recently sunk to their lowest point in nine months as they traded under the $600-per-thousand-board-feet mark. Conversely, a year ago, prices, fueled by pent-up demand for construction and home upgrades in the aftermath of COVID on the heels of a frenzy of speculation, reached $1,733, which was unprecedented.But as the housing market backed down in light of escalating interest rates, lumber prices have borne the brunt, receding more than 60% from their March highs, according to Business Insider. In May,…

Single-Family Constructions Down In Suburban Markets

Construction of single-family homes fell across several market types in Q1 2022, with an especially large dip in large suburban markets, according to the National Association of Home Builder’s (NAHB) Home Building Geography Index (HBGI). Four-quarter moving average single-family growth rates in large metro suburban counties fell from 18.7% in Q1 2021 to 5.2% in Q1 2022. At the same time, multifamily construction in large metros has jumped after falling during the pandemic. Large metro core counties recovered from a negative 3.6% growth rate to a 17.4% rate. Multifamily construction was largely centered in large metro core areas (36.9% of development), followed by large metro suburbs (25.8%), small metro core areas (23.5%), and other submarkets (13.7%). “Single-family growth rates have…

Home Prices Continue To Soar

Home price appreciation continues to soar, with both the S&P CoreLogic Case-Shiller Indices and the Federal Finance Housing Agency’s House Price Index posting significant gains. The Case-Shiller Indices had the highest YOY price gains in its 35-year history. The National Index showed a 20.6% YOY increase in March. The 10-City Composite index rose 19.5%, while the 20-City Composite was up 21.1% YOY. Month-over-month, the seasonally adjusted National Index rose 2.1%, the 10-City rose 2.2%, and the 20-City rose 2.4%. All 20 cities saw price gains both before and after adjustment. Tampa (+34.8%), Phoenix (+32.4%), and Miami (+32%) led the surge. Seventeen of the 20 cities had higher price increases YOY in March 2022 than in February 2022. “The strength of…

Prices Are Up In Distressed Neighborhoods Due To Soaring HPI And Low Inventory Elsewhere

Home prices rose in Q1 2022 for the majority of Opportunity Zones, with the pace of gains in half of all zones besting quarterly and annual increases across the nation, ATTOM reported. Opportunity Zones are areas targeted for economic improvement, defined in the Tax Act legislation as census tracts in or alongside low-income neighborhoods that meet specific criteria for redevelopment. ATTOM analyzed 5,092 zones in the U.S. that had at least five home sales in Q1 2022. The report found that median single-family home and condo prices increased in 55% of zones between Q4 2021 and Q1 2022. In 50%, prices rose by at least 20%, despite the fact that the pace of increases slowed in Q1. “Home price trends…

Double-Digit Home Price Growth Increased In Q1 2022

More metro areas saw double-digit YOY increases in their median single-family existing-home sales price in Q1 2022 than in Q4 2021, according to the National Association of Realtors’ (NAR) quarterly report. Prices grew by double-digits in 70% of the 185 metros analyzed by NAR, up from 66% in Q4 2021. The median sales of single-family existing homes rose at a pace of 15.7% to $368,200, compared to 14.3% in the quarter prior. Affordability dropped as a result, with monthly mortgage payments on the typical home with a 20% downpayment rising to $1,383, up $319 (30%) YOY. Homeowners spent 18.7% of their income on mortgage payments, up from 14.2% the same time last year. The South region accounted for 45% of…