July 19, 2024 Housing Market News

Welcome to today’s roundup of real estate news, where we delve into the latest developments affecting the housing market. From builder sentiment and innovative housing funds to city initiatives and international market shifts, our coverage spans a wide array of topics that are shaping the landscape of housing across the United States and beyond. Whether you’re interested in the economic factors influencing home prices, the challenges facing international buyers, or new governmental actions aimed at making housing more affordable, our articles provide insightful analysis and up-to-date information. Dive into our detailed reports to stay informed about the key trends and events in the real estate world.

NAHB/Wells Fargo Housing Market Index (HMI) | NAHB

The NAHB/Wells Fargo Housing Market Index (HMI) is a monthly survey that tracks the pulse of the single-family housing market. It measures builder sentiment on a scale of 0 to 100, with higher readings indicating more confidence in the housing market. In July, builder confidence fell to 42 due to higher mortgage rates and elevated construction costs. The survey also revealed that builders are cutting prices to boost home sales. Despite these challenges, the HMI has historically reflected periods of booms and busts in housing markets. Stay updated on the latest developments in the housing industry by visiting the NAHB website.

Learn more about the NAHB/Wells Fargo Housing Market Index here.

Apple helps launch Bay Area Housing Innovation Fund – Apple

Apple is partnering with the San Francisco Housing Accelerator Fund, Sobrato Philanthropies, and Destination: Home to launch the Bay Area Housing Innovation Fund. This fund, part of Apple’s $2.5 billion commitment to address housing affordability in California, will provide targeted loans to advance affordable housing development. With an initial $50 million investment, the fund aims to create over 400 homes within the next two years by removing barriers and delivering high-quality units faster and at lower costs. The first project, supported by the fund, will provide 145 units of permanent supportive housing for seniors in San Francisco’s Mission District. Apple’s total investment in affordable housing initiatives in California now exceeds $1.6 billion, benefiting over 60,000 Californians. Learn more about Apple’s efforts to address housing affordability here.

Partnerships Accelerate City Of Boise’s Housing Goals | News | City of Boise

The City of Boise is taking steps to address the housing crisis by scaling down operations at the Red Lion hotel and focusing on permanent supportive housing and short-term solutions for families. Mayor Lauren McLean emphasizes the city’s commitment to affordable homes, short-term shelter, and long-term housing with supportive services. Working closely with shelter operators and local partners, the city aims to keep residents safely sheltered while transitioning them into permanent homes. Recent investments in affordable housing have led to the construction of 95 new homes for families exiting homelessness, with wrap-around support services provided through partnerships and funding initiatives.

Learn more about the City of Boise’s housing goals here.

International buyers are pulling back from the U.S. housing market

International buyers of U.S. residential real estate are facing challenges such as high prices, tight supply, and a strong U.S. dollar, leading to a significant decline in their purchases. According to the National Association of Realtors, international buyers purchased 36% fewer existing homes from April to March compared to the previous year, marking the lowest level of international investment since 2009. The average and median purchase prices for foreign buyers were the highest ever recorded by the NAR. Additional hurdles faced by international buyers include credit score differences, unfamiliarity with U.S. processes, and foreign currency exchange. However, companies like Waltz are working to simplify the buying experience for foreign investors. Despite some improvements in supply, prices remain high, and the upcoming presidential election adds to the uncertainty. Read more about this trend here.

Housing provider for migrant children engaged in sexual abuse, DOJ says | AP News

The largest housing provider for unaccompanied migrant children in the U.S., Southwest Key Programs Inc., has been accused by the Justice Department of engaging in severe and pervasive sexual abuse and harassment of children in its care. The allegations include instances of rape, solicitation of sex, and the exploitation of vulnerable children. The lawsuit states that employees of Southwest Key Programs committed these offenses over an eight-year period, while the company received billions of dollars in government contracts. The lawsuit reveals disturbing details of the abuse and highlights the vulnerability of the children in Southwest Key’s care. Southwest Key has disputed the portrayal of its care for children. Read more about this shocking case here.

Housing Market Decoded: Why are home prices still rising?

The relationship between mortgage rates and home prices is not as straightforward as one might expect. Despite high mortgage rates, home prices continue to rise. Factors such as housing equity gains, low supply, and positive financial conditions for households contribute to the ongoing increase in home prices. While affordability remains a concern, it is expected that home prices will eventually start to come down as mortgage rates decline and supply increases in the second half of the year. Dr. Lisa Sturtevant, Chief Economist at Bright MLS, provides insights into the complex dynamics of the housing market. Read more about this topic here.

Biden administration to unveil new actions aimed at lowering housing costs

The White House plans to announce new measures to address the high cost of housing, including a proposal for Congress to pass a law capping rent increases at 5% for landlords with more than 50 units. The plan aims to balance the needs of tenants while incentivizing the construction of more affordable housing. Additionally, the administration is looking to sell federal land for repurposing into affordable housing. These actions come as President Biden visits Nevada, where officials have identified public land that could be used to build up to 15,000 affordable rental and homeownership units. The announcement coincides with the first night of the Republican National Convention, where former President Trump officially became the GOP nominee. Read more about these housing initiatives here.