Fannie Mae’s Post

Persistent inflation and stagnant wages have lagged behind multiple surges in the prices of key consumer price baskets. Sticky interest rates and a rise consumer debt have handcuffed borrowers by pricing them out of the #mortgage market. The strong bull market, current positive growth rate of real GDP, and, strong consumer spending are the conditions where we would expect cost of living increases for workers. Households will not be able to keep up with the current rate of #borrower spending, however. As lines of new credit dry up. there will be a negative effect on the economy. Bear markets and economic bust cycles often preclude wages hikes. What is it going to take? Downward pressure on interest rates or housing prices? The overdue rise in household wages to combat the accelerated rise in the cost of living? Social programs to greater assist lower income borrowers ? (Economic data gleaned from Deloitte)

Despite improved perceptions of the housing market since the end of 2023, concerns persist about housing affordability and rate hikes, as the median sales price of homes remains high. 🏠 Housing costs influence consumer sentiment, as persistently high housing costs sully an otherwise positive economic picture. Sarah Dickerson, #KenanInstitute research economist and UNC Kenan-Flagler Business School assistant research professor, shared insights from this data: "Put simply: We need more housing. To date, 2024 has seen modest increases in year-over-year new listing growth, but affordable housing inventory still falls short of demand." Dickerson said. "This shortfall has led to stiff competition for a limited pool of available homes, which translates to high home prices." What policies could be enacted to bring down housing costs? Read the full #KenanInsight on consumer sentiment here: https://lnkd.in/egaAzB4x #KIPE #AffordableHousing

Monthly housing update from the APA Market Research team: U.S. housing starts ran at a seasonally adjusted annual rate of 1.35 million units in June, while the May estimate was revised upward. For the quarter, starts averaged an annual rate of 1.35 million units, down 4.2% from the first quarter. The monthly economic data for June points to a U.S. economy that expanded at a 2% annual rate in the second quarter. Federal Reserve policymakers are likely to conclude that there is no urgent need to ease monetary policy for several more months. The extraordinarily low number of existing homes available for sale continues to constrain activity in that segment of the housing market. Pending home sales, which is a measure of when a sales contract is signed, remains at historically low and the constrained supply is contributing to the rise in home prices. #HousingReport #APAwood

The end of the calendar year provides a timely opportunity to refresh the annual change in dwelling values over the past 20 years.... Plotting the change across calendar years provides an easy reference point for cycles and a clear comparison point for annual growth patterns between cities and against the long run average. While 2023 was a strong year for value growth at the macro-level - some capitals saw values drift a little lower or hold flat (Hobart, Darwin and ACT) while three capitals saw double digit annual growth (Perth, Brisbane and Sydney). What to expect in 2024? 👉 The trends from late 2023 are pointing towards a milder outcome for housing values in early 2024, with the potential for a year of two halves.  👉 The trajectory of interest rates through 2024 will be a key factor influencing housing trends. Lower rates through the second half of the year are looking more likely. 👉 Although rates may come down later in the year, an easing in macroprudential policy settings is not a given. Policy makers are likely to be wary of stimulating another housing value growth phase. 👉 Housing affordability is set to be high on the policy agenda this year. The latest Housing Affordability Report from ANZ and CoreLogic showed a worsening across every affordability metric last year. 👉 Policy responses to affordability challenges are likely to remain diverse, however the focus should firmly be on supply side measures in 2024. Demand side measures tend to push prices higher (eg grants, concessions, deposit guarantees etc). Find the full detail on value changes, rental conditions and the market outlook in CoreLogic Australia's December 2023 indices wrap 👉 https://lnkd.in/g-r8wZKe

Why the U.S. Housing Market is Unlikely to Crash? An Expert's Perspective The U.S. housing market has been a topic of interest for many, with some speculating about the possibility of a crash. However, after analyzing the current market conditions, we believe that the housing market is not headed for a downturn. Here are three key reasons why a crash isn't on the horizon. These factors, along with others, suggest that the U.S. housing market is well-positioned for steady growth in the coming years. As industry professionals, it's essential to stay informed about market conditions and trends to provide the best advice to our clients. We encourage you to share your thoughts on this topic. What are your experiences in the current housing market? Have you noticed any other trends that support or contradict these points? Let's continue this conversation and work together to navigate the ever-changing landscape of the housing industry. If you have any questions or would like to discuss this further, feel free to reach out to me directly. Click the link below to a schedule your appointment today! https://lnkd.in/eGURX-2V #housingmarket #realestate #markettrends #expertinsights #TeamDavis #patrickandeasterdavisrealtors #exprealty

Why the U.S. Housing Market is Unlikely to Crash? An Expert's Perspective The U.S. housing market has been a topic of interest for many, with some speculating about the possibility of a crash. However, after analyzing the current market conditions, we believe that the housing market is not headed for a downturn. Here are three key reasons why a crash isn't on the horizon. These factors, along with others, suggest that the U.S. housing market is well-positioned for steady growth in the coming years. As industry professionals, it's essential to stay informed about market conditions and trends to provide the best advice to our clients. We encourage you to share your thoughts on this topic. What are your experiences in the current housing market? Have you noticed any other trends that support or contradict these points? Let's continue this conversation and work together to navigate the ever-changing landscape of the housing industry. If you have any questions or would like to discuss this further, feel free to reach out to me directly. Click the link below to a schedule your appointment today! https://lnkd.in/ey3N6D9R #housingmarket #realestate #markettrends #expertinsights #TeamDavis #patrickandeasterdavisrealtors #exprealty

The housing landscape is shifting towards balance, with declining rent-to-income ratios and easing rent pressure in many metros. However, the extent of relief varies, influenced by local economic conditions, supply dynamics, and demographic changes. Learn more in this quarter’s Housing Affordability Update, where economists Lu Chen and Mary Le analyze the latest Moody’s CRE multifamily data, identify key trends in Florida and Texas, and check in on performance metrics in “pandemic darling” metros: https://lnkd.in/e-5Dh4rF #HousingAffordability #Multifamily

Interest rates are no longer the only issue the Housing Market is facing. We're facing a very impactful housing crisis that isn't being addressed: a lack of AFFORDABLE inventory. This scarcity is causing a ripple effect - bidding wars are pushing prices up, further squeezing out middle-class buyers and hindering a balanced market. Left unchecked, this lack of affordability could create a larger issue than inflation. A healthy housing market is crucial for a stable economy. If a significant portion of the population is locked out of homeownership, it can lead to decreased consumer spending and economic stagnation. What are your thoughts? Share your comments and follow for more insights on the housing market. #realestatemarket #realestateeconomics #realestate

NY Fed housing survey on consumer expectations. https://lnkd.in/gxrvwsnR Renters doubts on ability to ever buy a home reaching a record high. As we see Build-To-Rent communities continue to see positive activity and renters may have to stay put til the environment changes. The conditions as we all know are a struggle with high rates, prices and difficultly saving in a high inflation market. Good data. #realestate #rsmusllp

The fastest rising US Housing Markets in 2024.