Welcome to today’s roundup of real estate news, where we delve into the pressing issues and innovative solutions shaping the housing market. From Janet Yellen’s stark warning about the challenges facing first-time homebuyers in the U.S., due to soaring home prices and mortgage rates, to Raleigh’s strategic use of public land to foster affordable housing developments, our coverage spans a broad spectrum. We also explore how fluctuating mortgage rates are influencing the spring housing market, potentially reshaping buyer and seller strategies. Additionally, we look beyond domestic borders to Vienna’s successful housing model, which could offer valuable lessons for tackling affordability and homelessness in California. Stay informed and gain deeper insights into these critical topics by following our detailed reports and expert analyses.
‘Almost impossible’: Janet Yellen despairs at housing market’s one-two punch for first-time buyers | Fortune
According to a Redfin report, home prices in major U.S. cities have risen nearly 5% year over year, while mortgage rates are nearing the 8% peak from fall 2023. Treasury Secretary Janet Yellen testified that this combination is making it “almost impossible” for first-time homebuyers to enter the housing market. Yellen also mentioned the lock-in effect, where current homeowners are hesitant to sell their homes due to fear of higher rates and prices. President Joe Biden’s proposed housing tax credits could potentially alleviate this effect. However, with median home prices reaching a near-record $383,188, many buyers are still excluded. Yellen emphasized the need to increase availability of affordable housing and starter homes. Rising home prices and mortgage rates have led to a record 15% year-over-year increase in median monthly housing payments, making affordability a challenge. First-time homebuyers also face difficulties in saving for down payments, with some resorting to side hustles or asking for cash on wedding registries. The summary encourages readers to learn more by visiting the Fortune article.
Affordable Housing 101 Video: Public Land for Affordable Housing | Raleighnc.gov
The City of Raleigh addresses the cost of land in housing developments by providing it at little or no cost to affordable developers. The 2020 Affordable Housing Bond allocated $16 million to purchase land near transit for affordable housing. Since 2016, the City has contributed 20 sites to affordable developers, resulting in over 700 units of affordable housing. Publicly-owned land is utilized to combat the shortage of affordable housing. To learn more about affordable housing and the City’s efforts, watch the video and explore additional resources on the Affordable Housing 101 page. For further inquiries, contact the Housing and Neighborhoods Community and Small Business Development Division at [email protected] or 919-996-4330.
How mortgage rates have influenced the spring housing market
Buyers and sellers in the spring housing market are closely watching mortgage rates, which have been on the rise. The average 30-year fixed-rate mortgage reached 7.17% for the week ended April 25, according to Freddie Mac data. Experts anticipate that the Federal Reserve will hold rates steady in the upcoming meeting and potentially lower borrowing costs in the second half of the year. However, until then, average mortgage rates may continue to fluctuate between 6.5% to 7.5%. The volatility of rates is expected to impact the housing market the most, as buyers may find it challenging to afford properties when rates change from week to week. Despite the higher rates, some areas are experiencing increased sales as buyers adjust to the new rates and look for ways to make it work. The article suggests that more sales are expected at the end of May and early June, which is also when sellers tend to get the best prices. The summary encourages readers to learn more by visiting the CNBC article.
Austin confirms Russians deployed to airbase housing US military in Niger | Military News | Al Jazeera
US Secretary of Defense Lloyd Austin has confirmed that Russian military personnel have entered an airbase in Niger that hosts US forces. This follows Niger’s decision in March to expel nearly 1,000 US troops from the country. Prior to a military coup last year, Niger was a key partner in the US’s fight against ISIS and al-Qaeda affiliates in the Sahel region. The presence of Russian troops at the airbase puts them in close proximity to US forces, adding tension to already strained US-Russia relations. However, Austin stated that there is no significant issue as the Russian troops do not have access to US personnel or equipment. The US and its allies have been forced to withdraw troops from African countries as military leaders distance themselves from Western governments. Learn more by visiting the Al Jazeera article.
Could Vienna’s approach to affordable housing work in California? | Housing | The Guardian
Housing costs and homelessness are rising in California, while in Vienna, people of all income levels live in subsidized housing. Several delegations from California have visited Vienna to understand why it consistently ranks as one of the world’s most livable cities. They are impressed by the absence of homeless encampments and the scale of subsidized housing developments with shared amenities. Vienna’s housing policy ensures dignified and affordable homes for all, including the middle class. Sixty percent of Viennese residents live in subsidized housing, compared to just 5% in California. Vienna’s success lies in its focus on building new affordable housing, creating mixed-income neighborhoods, and a 1% tax on all salaries that provides a permanent funding stream for construction. Inspired by Vienna, Los Angeles has launched its own landbank and increased transfer taxes on expensive homes to fund affordable housing. However, challenges such as nimbyism and low property taxes remain in California. Learn more by visiting the Guardian article.