Welcome to today’s roundup of the latest developments in the real estate sector! From anticipated changes in home affordability and market dynamics to innovative construction initiatives across various regions, our coverage spans a wide array of topics that are shaping the housing landscape. Whether you’re a potential homebuyer, a real estate professional, or simply keen on staying informed about the market trends, these articles offer insights into what 2024 holds for real estate. Dive into detailed analyses, expert predictions, and regional reports that highlight the challenges and opportunities within the housing market today. Explore more by following the links provided in each summary!
Housing Market Predictions For 2024: When Will Home Prices Be Affordable Again? – Forbes Advisor
As we head into peak home-buying season, signs of life have begun to spring up in the housing market. However, still-high mortgage rates and home prices amid historically low housing stock continue to put homeownership out of reach for many. The National Association of Realtors has agreed to a monumental $418 million settlement that will require changes to broker commissions, potentially upending the buying and selling model. Despite ongoing affordability hurdles, experts forecast an increase in home sales transactions compared to last year, with a slower rise in home prices. The housing market is likely to continue facing affordability constraints, but there are some hopeful signs of growth, such as an increase in builder sentiment and new single-family building permits. To read more about the housing market predictions for 2024, click here.
New home construction expected to bounce back from 2023 decline: Here’s what that means for region
A recent decline in new home starts in the Dayton area is expected to be short-lived, according to industry experts. Total permits for new home starts dropped 14.8% last year due to rising costs of materials and labor. However, experts predict that this year will see an easing of interest rates and a realization among buyers that waiting to buy a new home doesn’t save them money because the cost of materials and labor continues to rise. Areas like Xenia, Miamisburg, and Huber Heights have seen growth in recent years, while other parts of Montgomery and Warren counties have experienced flat or declining home building activity. Despite the challenges, the market remains strong, and developers are building a variety of housing types to meet the demand. To read more about the expected bounce back in new home construction, click here.
The D.C. region needs to build 87 new homes per day. It’s not close. – The Washington Post
In order to accommodate the region’s growth, the D.C.-area needs to build at least 320,000 housing units in the next decade. However, a recent analysis by The Washington Post found that the region is falling behind the pace needed to meet this target. From 2020 to 2023, the region produced an average of about 60 units per day, creating a deficit of more than 40,000 units. The housing shortage is particularly acute for low earners and people of color, exacerbating issues of housing instability and wealth inequality. Despite efforts to increase housing production, regulatory barriers and opposition from community groups continue to hinder progress. To read more about the housing challenges in the D.C. region, click here.
Housing market shortage comes to Kansas City
If you’re looking to buy a home in Kansas City, be prepared for scarcity and tough competition. Real estate experts say that homeowners with historically low mortgage rates are reluctant to sell and take on higher interest rates, contributing to a shortage of existing houses on the market. Home construction is surging, but rising labor and materials costs make it challenging to keep up with demand, pushing affordability out of reach for many first-time homebuyers. The median sale price of a home in Kansas City has increased by 11% from last year. Builders also face challenges navigating construction rules and codes that vary from one city to another. To read more about the housing market shortage in Kansas City, click here.
North Texas home builders got a hot start to 2024. Why? And will it continue?
Home builders in North Texas had a strong start to 2024, with construction starts improving by 44.7% compared to the same period last year. The increase in starts can be attributed to several factors, including low mortgage rates and a focus on selling down existing housing inventory. However, there are underlying challenges, such as narrower profits and difficulty finding qualified buyers in certain areas. Sales of existing homes remain limited, but new home sales now represent 40% of the combined new and existing home market. While the market is expected to continue, rising inflation and potential interest rate hikes may have a dampening effect. To read more about the hot start for North Texas home builders, click here.
New construction remains popular as existing home listings continue to lag | Fox Business
The National Association of Home Builders/Wells Fargo Housing Market Index rose by three points in March, reaching the highest levels since July. This increase indicates a growing interest in new construction among homebuyers. Compared to existing homes, newly built homes are more attractive due to incentives offered by builders and a break from bidding wars. Builders have made efforts to entice buyers with sales incentives and more affordable options. However, while new builds are on the rise, the existing home market remains largely unaffordable for the average buyer, with high mortgage rates and expensive homes. Despite these challenges, homebuyers remain optimistic about the housing market, hoping for a drop in interest rates. To explore mortgage options and compare rates, visit Credible.
Illinois cities could significantly speed up new home, business construction
A new proposal in Illinois aims to reduce the lead time on construction projects by allowing local architects and engineers to handle permitting and review processes. This approach, similar to what Phoenix, Arizona implemented in 2012, can cut down costly delays and streamline the building permit and plan review process. Phoenix saw significant growth in both population and housing supply after implementing this self-certification process. By adopting a 24-hour self-certification ordinance, Illinois cities could produce more new housing and commercial spaces in less time, driving down overall housing costs and increasing opportunities for residents. To learn more about this proposal, contact the Illinois Policy Institute.