Home prices surged again in the third quarter as home shoppers butted heads because of low inventory.
Annual single-family home price growth increased annually and quarterly from Q3 2022 to Q3 2023, according to Fannie Mae’s Home Price Index.
Price growth rose 2% quarter-over-quarter and was up 5.3% YOY, showing home price appreciation remains resilient amid stock shortages. The index measures the average quarterly price change for all single-family properties in the United States, excluding condos.
“Slightly slowing house price growth may reflect in part the affordability impact of the higher mortgage rate environment – even though prices were still solidly higher this past quarter than a year earlier,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. …
Builder confidence has dipped, breaking a seven-month streak of increases, as high rates and shelter inflation put a dent in new home demand.
The National Association of Home Builders and Wells Fargo Housing Market Index, which tracks confidence in the new single-family home market, decreased by 6 points to a reading of 50.
NAHB said that construction costs, lack of buildable lots, and ongoing shortages forced the reading down this month.
“But while this latest confidence reading is a reminder that housing affordability is an ongoing challenge, demand for new construction continues to be supported by a lack of resale inventory, as many homeowners elect to stay put because they are locked in at a low mortgage rate,” NAHB Chairman…
Americans may idolize a white Christmas, but owning a home in the nation’s snowiest states costs a premium, according to a LendingTree analysis. Median-priced homes in the states that got the most snow in December 2021 cost $56,814 more on average than those in the states with the least snow. Alaska, Idaho, and Utah saw the most snowfall last December. Their median home values – $304,900, $369,300, and $421,700 – are 4.93 times higher than their median household incomes. Warmer states are typically less expensive than frigid Northern states, as evidenced by the flood of affordability-minded homebuyers to the Sun Belt. But this isn’t always the case. LendingTree noted that the median home value in Hawaii ($722,500) is at least…
Most pet owners are willing to forgo their dream home if it doesn’t suit their furry friends, according to a new survey from Realtor and HarrisX. Of more than 3,000 American adults surveyed, 82% who owned pets and planned to buy a home in the next year reported that their pets’ needs are just as important as their own or their family’s needs. About three-quarters of homeowners own a pet, and 79% say they consider their animals when choosing a home or apartment. More than 60% of prospective buyers say they have passed on an otherwise perfect home because it didn’t accommodate their pets. Neighborhoods matter, too, as 87% of those with pets looking to buy a house within the next…
Homebuyers saw affordability plunge in September as the typical monthly payment rose $102 from August. The national median payment applied for by applicants jumped to $1,941 from $1,839 in the month prior, the Mortgage Bankers Association reported. MBA’s Purchase Applications Payment Index fell for a second consecutive month, up 5.5% to a reading of 163.6. PAPI measures monthly payments across time and relative to income, so this reading indicates that payments on new mortgages accounted for a smaller share of a typical person’s income. The increase reverses four months of improvement from an index high of 164.2 in May. “With mortgage rates continuing to rise, the purchasing power of borrowers is shrinking. The median loan amount in September was $305,550…
More home shoppers are searching out-of-market in Q1 2022, according to a new report from Realtor.com. Realtor.com looked at data from its website on where prospective buyers are searching for homes to identify migration patterns. In Q1 2022, 59.7% of Realtor.com listing page views came from shoppers looking for homes in metros other than where they live. This was up 1.9% from Q4 2021 and 4.6% YOY. Pageviews in areas with relatively lower median listing prices rose. Regions with warmer climates that have historically been inexpensive are the most popular search areas. Southern and Sun Belt markets are especially attractive to out-of-market and out-of-state viewers. Realtor.com shoppers in the Northeast were the most likely to look at listings in other…
