May 16, 2024 Housing Market News

Welcome to today’s roundup of the latest developments in the real estate market! From Utah’s innovative $300 million plan to combat the housing shortage by building affordable starter homes, to fluctuating home prices and sales trends across the U.S. and Canada, we’ve got all the insights you need. Discover how new zoning laws and financial incentives are shaping the future of housing, understand the impact of rising mortgage rates on home buying, and explore the ongoing challenges and opportunities in housing construction. Whether you’re a first-time homebuyer, a seasoned investor, or simply keen on keeping up with real estate trends, our coverage offers valuable perspectives to help you stay informed. Dive into detailed articles for a deeper understanding of these complex issues. Happy reading!

Utah’s $300M plan to build its way out of a housing shortage — with ‘starter’ homes for sale

Utah is taking an ambitious approach to address its housing shortage by launching a $300 million plan to build 35,000 new starter homes across the state in five years. The goal is to boost homeownership by constructing smaller, no-frills homes that are attainable for first-time buyers. This strategy marks a shift towards single-family home construction and aims to address affordability. The program requires developers to commit to building at least 60% of dwellings as “attainable” homes, priced at around 80% of the county’s median home price. If successful, these homes could be priced between $350,000 and $800,000, depending on the location. The initiative also includes new zoning tools and financial incentives for builders. With Utah’s ongoing shortage of affordable homes and rising concerns about housing affordability, this plan aims to create generational wealth and provide opportunities for upward mobility. To learn more about Utah’s efforts to tackle the housing shortage, click here.

Housing Market Predictions For 2024: When Will Home Prices Be Affordable Again? – Forbes Advisor

The spring home-buying season has yet to gain momentum due to rising mortgage rates and affordability challenges. Existing home sales have stagnated, while newly built home sales are thriving. The housing market is also on the brink of a significant shift, with a landmark settlement on real estate broker commissions set to take effect in July. Despite ongoing affordability hurdles, experts predict an increase in home sales transactions compared to last year, with a slower growth in home prices. However, price fluctuations will vary regionally. The low housing supply and high mortgage rates continue to dampen hopes for a housing recovery. To learn more about the predictions for the housing market in 2024, click here.

Housing boom in most of the US could ease shortage, but cost is still a problem • Stateline

The United States has seen the addition of almost 5 million housing units since 2020, primarily in the South and mostly consisting of single-family homes. This growth has made the housing shortage appear conquerable in many parts of the country. However, experts emphasize the need for more construction, particularly of single-family homes, as high interest rates continue to hinder potential homebuyers. While housing construction has been strong in recent years, there is still a supply-demand gap, especially for affordable homes. The housing unit data released shows significant increases in various states, with Texas, Florida, and California leading the way. Despite the progress, the housing shortage remains a pressing issue. To learn more about the housing boom and its impact on the shortage, click here.

Bloomberg – Are you a robot?

To continue reading the article, please confirm that you are not a robot by clicking the box below. Make sure your browser supports JavaScript and cookies and that you are not blocking them from loading. For more information, you can review Bloomberg’s Terms of Service and Cookie Policy. If you have any inquiries regarding this message, please contact the support team and provide the reference ID.

Continue reading

Home sales and new home construction both drop in April

In April, Canada experienced a slight decline in the annual rate of housing starts, with a one percent drop compared to March 2024. The number of residential home sales also decreased during the same period. The Canada Mortgage and Housing Corporation (CMHC) reported a drop in the annual rate of housing starts, as well as a decrease in the six-month average measure of trends. The CMHC noted that higher interest rates have contributed to decreases in multi-unit starts. Additionally, the Canadian Real Estate Association (CREA) reported a 1.7 percent decline in home sales in April compared to March 2024, although sales were higher than the previous year. Despite the drop in sales, the average sale price was down 1.8 percent compared to April 2023. While new listings increased supply in some markets, prices remained relatively flat. To learn more about the decline in home sales and new home construction in Canada, click here.

Framing Lumber Prices | NAHB

The National Association of Home Builders (NAHB) provides an overview of the behaviors within the U.S. framing lumber market, including weekly tracking of lumber prices and plywood prices. Softwood lumber prices have been volatile due to increased demand, rising tariffs, supply-chain bottlenecks, and insufficient domestic production. The NAHB advocates for actions to address high lumber prices and emphasizes the impact of lumber costs on the affordability of new homes. The analysis also highlights the importance of other wood products in residential construction and the factors that influence pricing. To learn more about framing lumber prices and NAHB’s efforts, click here.