Welcome to today’s coverage on the dynamic world of real estate. From exploring potential market crashes and unprecedented housing developments in New York City, to legislative advancements in Massachusetts and debates over land ownership in Boston, our articles delve into crucial topics that shape the housing landscape. Whether you’re a homeowner monitoring market trends, a prospective buyer navigating affordability challenges, or a citizen concerned about social justice in urban development, our comprehensive insights provide valuable information to help you stay informed. Dive into our detailed reports to understand the forces driving today’s housing market.
When will the housing market crash again?
A housing market crash happens when home values plummet due to a lack of demand for homes or an oversupply. Housing market crashes can happen for multiple reasons, such as a deep recession or depression causing homeowners to lose their jobs, high mortgage rates making homes unaffordable, or a glut of available homes that buyers don’t want or cannot afford to buy.
During the last housing market crash, home prices dropped over 15% in 2008 compared to 2007, according to the S&P/Case Shiller Home Price Indices.
There are no signs that the U.S. housing market is about to crash. In fact, the economic outlook and expectations for the real estate market nationally are positive for 2024. A housing crash occurs when demand drops dramatically and home values tumble.
“Unless there is a significant surge in the rate of unemployment, which is currently not in the forecast, the housing market is expected to continue to rebound from 2023 lows,” said Selma Hepp, chief economist of real estate data analytics firm CoreLogic, in an email.
Lawrence Yun, chief economist and senior vice president of research for the National Association of Realtors, agreed that there are no indications that a housing market crash is imminent.
According to a Washington Post analysis, home prices have risen 54% since 2019, which led some economists to worry about the potential for a housing bubble that might burst. However, even though home prices continue to rise, the pace of increases has slowed.
Whether you’re monitoring your home’s value or hoping to buy a new home, you may want to watch for indications of a future housing market crash. An economic shock such as a major stock market crash or big, prolonged job cuts could signal the start of a housing market crash, Yun said, along with a large increase in the supply of homes.
If you’re worried about when the housing market will crash again, you can take steps to protect your financial wellbeing, such as establishing an emergency savings fund, reducing debt, making a down payment, and choosing a fixed-rate mortgage.
Mayor Adams Announces Back-to-Back Record Years for Creating and Connecting New Yorkers to Affordable Housing
New York City Mayor Eric Adams announced back-to-back record-breaking years for producing and connecting New Yorkers to new, affordable homes. The city has produced the most supportive housing and housing for formerly homeless New Yorkers for the second year in a row. The administration financed the most new affordable homes in history and converted 3,678 New York City Housing Authority (NYCHA) apartments into newly renovated residences. Additionally, a record number of homeless New Yorkers were moved into permanent housing through City Fighting Homelessness and Eviction Prevention Supplement (CityFHEPS) housing vouchers. In total, city agencies financed 28,944 affordable and public housing units in Fiscal Year (FY) 2024 through new construction and preservation initiatives.
Mayor Adams stated that these record-breaking years are the result of countless city agencies coming together to ensure all New Yorkers have access to safe, stable housing. The administration aims to produce over 108,000 new homes in the next 15 years through the “City of Yes for Housing Opportunity” proposal. The Adams administration is committed to addressing the generational housing shortage and affordability crisis in the city.
Mass. lawmakers reach deal on major housing affordability bill | WBUR News
House and Senate negotiators have reached an agreement on a $5.16 billion housing bond bill in Massachusetts, sending it to Governor Maura Healey for approval. The compromise bill focuses on financial elements that were common between the two branches, including funding for public housing and affordable units. However, several policies and initiatives were left out of the final bill, such as the authorization of $1 billion for the expansion of the Massachusetts Water Resources Authority. The bill also does not include proposals for landlord-paid broker’s fees or grants for rural, small-town, and seasonal communities. Despite these omissions, the bill includes measures such as allowing accessory dwelling units by right in single-family zones and prohibiting home purchase offers conditioned on waiving a home inspection. The bill aims to address housing affordability and create new units across the state.
Is The Housing Market Going To Crash? | Bankrate
Despite high mortgage rates and limited housing supply, experts do not predict a housing market crash. Home prices continue to rise due to a lack of inventory and strong demand. Factors such as inflation, low housing supply, and high demand contribute to the ongoing increase in home prices. While mortgage rates are expected to drop, it is unlikely to lead to significant price declines. The housing market correction, if any, is expected to be modest. Homeowners’ strong personal balance sheets and cautious construction pace by builders contribute to the stability of the market. Although affordability remains a challenge, the housing market is not in a bubble, and a significant price decline is highly unlikely. Overall, the housing market outlook suggests continued price increases and limited supply, making it challenging for buyers.
To build housing, Boston gives away land Black and brown families once owned | GBH
On a spring afternoon, Pamela Saucer-Richardson stood in a grassy vacant lot on Erie Street, a block from Franklin Park in Dorchester, and remembered when her father owned the property more than 30 years ago. In 1992, the city of Boston notified her father, James Saucer, it planned to take the two-lot property because he owed nearly $5,000 in unpaid taxes and interest. Now, the city is planning to sell the land for $200 to a nonprofit as part of a program called Welcome Home, Boston meant to fast-track construction of affordable housing in some of the city’s lowest-income areas. But critics say not enough has been done to address what led the properties to be vacant: historic discrimination against Black and Latino residents by a racist real estate system.
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