Sales of newly built single-family homes eked out an increase in August, but not enough to impress economists or make up for big shortfalls in housing. Sales for new homes increased 3.5 percent in August to a seasonally adjusted annual rate of 629,000 units, but the uptick was off of significantly revised downwardly reports from June and July, the U.S. Commerce Department reported Wednesday. The revised reports indicate a soft patch overall in ne
The Federal Reserve on Wednesday voted to raise its benchmark interest rate by a quarter of a point to the highest point in more than a decade, and the housing market is now bracing for impact.The Fed lifted its rate to range between 2 percent and 2.25 percent. This is the third time in a year the Fed has raised its rate. The committee points to an upbeat economy that is “healthy and moving forward.”“These rates remain low,” Federal Reser
Pending home sales continued to fall last month, marking the eighth consecutive month for annual decreases, the National Association of REALTORS® reported Thursday. The drop in contracts may be a sign of a growing number of buyers who are being priced out of the market, economists warn.NAR’s Pending Home Sales Index—a forward-looking indicator based on contract signings—fell 1.8 percent to a reading of 104.2 in August. Contract signings ar
Sen. Elizabeth Warren, D-Mass., has proposed a bill that sets out to make homes more affordable for low-income and middle-class Americans. The American Housing and Economic Mobility Act of 2018 calls for construction of new homes and more renovations of existing ones by removing some red tape for builders on regulatory costs and offering more incentives for them to build more affordable homes.For example, the bill proposes giving local government
Seventy-seven percent of consumers say they believe now is a good time to sell a house—a record high. That's according to new findings from the National Association of REALTORS®’ second quarter Housing Opportunities and Market Experience survey.Fifty-three percent of survey respondents say they believe home prices will continue to increase in their communities over the next six months. Survey respondents in the West were the most upbeat ab
In the aftermath of Hurricane Florence, a new problem is surfacing: The shrinking number of households that have flood insurance.Flood damage is not included in a standard homeowners’ insurance policy. So if a mortgage lender does not require a borrower to obtain it, the onus falls on the homeowner to seek it out. For some, the extra money to do so may make this unlikely. As of April 2017, the average annual premium for a policy through the Na
A housing market defined by rapidly rising home prices, bidding wars, a lack of inventory, and sellers with the upper hand in negotiations may be changing. “The signs are pointing to a market that’s shifting toward buyers,” says Danielle Hale, realtor.com®’s chief economist. “But in most places, we’re still a long way from a full reversal.”After all, home sales aren’t exactly tanking. Prices for existing homes were up 4.6 percen
More young adults in search of affordable housing are moving to states like Ohio, Michigan, and Wisconsin. This area of the country—known as the Rust Belt—has seen its population decline in recent years, mostly from the loss of manufacturing and plant jobs. But the region could soon see a resurgence due to a swarm of millennials looking for a place to call home.It’s not just the affordable homes in the area that are luring this age group, C
As housing inventory increases and home prices begin to ease, the door to homeownership is opening for more buyers. But Freddie Mac economists aren’t optimistic that the real estate market will be able to break even with last year’s sales levels.In their September forecast, Freddie's economists point to a booming economy and job market, but point out a stalled housing market. They consider the main factors to be weaker housing affordabilit
The fall season is cooling down more than the temperature outside; it's also putting a much-needed chill on hot housing markets, where home prices have become unaffordable to the average buyer. More than one in four home sellers dropped their asking price last month, according to a new report by real estate brokerage Redfin. With inventory starting to inch up, sellers are facing stiffer competition in the market and adjusting their price expectat
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