Housing Market Digest: October 25
Welcome to your go-to guide for all things real estate, housing market trends, and economic insights—straight from our latest podcast episode! In this digest, we break down the most important headlines affecting homebuyers, sellers, and everyone in between. From rising mortgage rates to shifts in major housing markets, we’ve got you covered. Tired of searching the web for the latest news? Look no further—here’s your real estate update, all based on the podcast, delivered in a fraction of the time!
HEADLINE: U.S. Housing and Mortgage Market: Outlook for Late October 2024 – Spotlight: First-Time Homebuyers
AUTHOR: Freddie Mac Staff
LINK: Freddie Mac Housing Outlook
In late October 2024, Freddie Mac published a comprehensive housing outlook with a key focus on first-time homebuyers. Despite ongoing challenges around affordability and limited housing supply, first-time buyers are becoming a significant force in the market. There’s a silver lining—inventory is up by 30% compared to last year, giving buyers more options. However, economic headwinds and higher mortgage rates continue to pose challenges.First-time homebuyers remain crucial for market growth, and experts suggest that younger Millennials and Gen Z will play an increasingly important role in keeping demand strong in the next five to ten years. Many Gen Z buyers are entering the market as Millennials move to larger homes, marking a generational shift in housing demand.
HEADLINE: Mortgage Rates Were Supposed to Come Down. Instead, They’re Rising. Here’s Why
AUTHOR: Laurel Wamsley
LINK: NPR
In a headline from NPR, “Mortgage Rates Were Supposed to Come Down. Instead, They’re Rising,” Chief Economist Dr. Lawrence Yun emphasized that the era of 3% mortgage rates is over. The current norm hovers around 6%, which has created a significant financial adjustment for homebuyers. The days of cheaper borrowing are behind us, leaving many potential buyers grappling with higher monthly payments. Buyers and sellers will have to adapt to this new mortgage environment. While lower home prices were once expected, many are now shifting their hopes to more stable housing conditions rather than a return to record-low interest rates.
HEADLINE: Jerome Powell Has Accidentally Jammed the Property Market—Especially for the Ultrarich
AUTHOR: Eleanor Pringle
LINK: Fortune
According to a Fortune article, Jerome Powell’s Federal Reserve policies have unintentionally impacted the luxury real estate market. Activity in the first eight months of 2024 hit its lowest level in 30 years, with the “lock-in effect” keeping many high-end homeowners from selling. Those who secured low mortgage rates during the pandemic are hesitant to move, freezing activity in the luxury segment. This has resulted in pent-up demand, which could slowly loosen over time, but it’s not expected to change dramatically overnight.
HEADLINE: Mortgage Rates Bounce to July Levels on Inflation Worries
AUTHOR: Matt Carter
LINK: Inman
An Inman article highlighted recent concerns about inflation driving mortgage rates back to July 2024 levels. While inflation risks have decreased, they haven’t vanished, and the Federal Reserve’s balancing act to ensure a soft economic landing continues. Housing inventory and mortgage rates will remain key variables to watch as the market moves into 2025. Buyers are gaining a slight advantage as inventory builds, but affordability challenges still loom.
HEADLINE: Housing Market Shift: 6 Major Markets Where Home Prices Are Falling
AUTHOR: Lance Lambert
LINK: Fast Company
Fast Company reported that six major housing markets, including Austin, are experiencing price declines as supply outpaces demand. Once a pandemic boomtown, Austin is now seeing price cuts on both home sales and rentals. However, many experts suggest that Austin’s long-term growth potential remains intact, as the city continues to attract jobs and investment. This is viewed as a temporary correction rather than a long-term problem.
HEADLINE: The CoreLogic Case-Shiller Home Price Index
Next on the radar is the release of the CoreLogic Case-Shiller Home Price Index on October 29, 2024. This key report tracks monthly and yearly changes in home prices and is closely watched by industry experts. The trend of slowing home price growth is expected to continue, offering a glimmer of hope for those hoping for more affordability in 2025.
Podcast Links:
Spotify: https://open.spotify.com/episode/6rZoieIqcwXe8AOGwfj4dO?si=ZtJStRkLSnWqbxpY9EAv1A
