Today’s Housing Market News: June 14, 2024

Welcome to today’s roundup of real estate news, where we delve into the latest trends and developments shaping the housing market across the U.S. From the growing affordability gap that challenges many potential homeowners, to positive shifts like increased inventory of affordable homes, and significant corporate investments aiming to improve housing equity—each story provides a unique perspective on the dynamics at play. Whether you’re a buyer, seller, or just keen on following market trends, our coverage offers insights into what’s happening now and what might unfold in the future. Stay informed and ahead of the curve in the ever-evolving world of real estate.

Where housing affordability is worst and costs are highest in the U.S.

The affordability gap for home ownership in the U.S. is near a 10-year high, making the housing market increasingly inaccessible for many buyers. An analysis by NBC News reveals that a household earning the local median income can afford a home in just over 60% of counties nationwide, compared to over 90% five years ago. The rising cost of homes, high interest rates, and low construction contribute to the affordability crisis. Even in counties with lower-priced homes, affordability is dropping. Supply shortages and increasing prices have created an impossible market for middle-income households. The gap between income and home price is particularly pronounced in the West. While new construction could help ease the gap, the high cost of building remains a challenge. Despite some affordable areas, the shifting market forces buyers to make sacrifices and accept trade-offs.

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Is the housing market becoming affordable? A glimmer of good news

While mortgage rates are high and home prices continue to rise, there is a small positive trend in the housing market: more affordable homes are entering the market. reports that the inventory of smaller and more affordable homes has grown, helping to hold down the median price even as price per square foot increases. In May, there were 35.2% more homes for sale compared to the previous year, with a significant increase in homes priced in the $200,000 to $350,000 range. Every region in the U.S. saw gains in inventory, and all 50 largest metro areas experienced an increase in active listings. However, despite improved inventory, higher prices and mortgage rates still pose challenges for buyers.

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Amazon adds $1.4 billion to Housing Equity Fund for affordable housing

Amazon is contributing $1.4 billion to its Housing Equity Fund, partnering with thousands of nonprofits across the U.S. to address critical social issues and build stronger communities. The fund aims to support affordable housing initiatives and leverage Amazon’s resources, infrastructure, and passion for innovation. This significant investment demonstrates Amazon’s commitment to addressing housing affordability challenges and making a positive impact on communities.

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Here’s what to expect from the housing market in the second half of 2024

Experts are divided on the future of the housing market in the latter half of the year. While some believe that the market will improve, others find it difficult to predict. Glenn Kelman, CEO of Redfin, is optimistic about the market’s prospects, stating that the housing market has hit rock bottom and is expected to perform better. The mortgage rate lock-in effect is wearing off, leading to an increase in newly listed homes and available inventory. However, the boost in supply is not enough to attract buyers due to ongoing affordability challenges. Mortgage rates have slightly decreased, but affordability remains a top priority for buyers. While some metropolitan areas have seen price declines, the majority of markets continue to experience home price growth. Despite uncertainties, the housing market is expected to remain strong with another potential record high for home prices this summer. Read on to learn more about the factors shaping the housing market in the second half of 2024.

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Report finds Tampa housing market one of the fastest cooling in the nation

A recent report from Redfin has labeled the Tampa region as one of the fastest-cooling housing markets in the country. The analysis measured year-over-year changes in home prices, price drops, inventory, and the share of homes that sell within two weeks. Tampa saw about 43% of home prices drop, with an increase in the number of price drops compared to the previous year. While the market is seeing more listings and increased inventory, homes are selling for less and staying on the market longer. The cooling trend is attributed to factors such as an increase in natural disasters, a surge of new construction, high insurance costs, and rising home prices. Despite the cooling market, buyers in the Bay area have opportunities to get creative with offers and take advantage of high interest rates. To learn more, read the full report from Redfin.

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