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Miami Herald
3 hours ago
- Business
- Miami Herald
Number of Home Sales Falling Through Hits Record Level
The number of pending home sales that fell through hit record-levels for the month of June in 2025, as surging inventory and economic uncertainty continues to plague sellers. According to analysis by real estate firm and brokerage Redfin, over 57,000 home-sale agreements across the U.S. were cancelled in June, equating to around 15 percent of houses that were under contract in the month. This is up from 14 percent a year ago, and marks the highest cancellation rate for any June on record. Redfin said in its analysis that record levels of home sales falling through serves as a reflection of persistent economic unease among buyers, as well as the issues of affordability, inflation and high mortgage rates that may be weighing on their minds. The increased fiscal risks associated with homeownership have also contributed to rising levels of inventory, reducing sellers' leverage and putting power over the housing market more firmly in the hands of prospective buyers. Real estate agents who spoke to Redfin said buyers are becoming reluctant to finalize purchases due to economic uncertainties, in particular high mortgage rates, the potential impacts of tariffs, inflation and the possibility of a recession in the near future. Others noted that surging levels of inventory have put power in the hands of buyers, leading many to cancel deals when another home within their price range is listed. According to June Housing Market Trends Report, the number of homes for sale in the U.S. rose nearly 30 percent year-over-year, marking the 20th consecutive month of increases. The latest market report from Zillow, and recent data from the St. Louis Fed, similarly showed that housing inventory has risen to post-Covid highs. Analysis from Redfin in May said that high levels of inventory, coupled with subdued demand, had led to a buyer surplus of nearly 500,000. It said that this marks the largest gap between buyers and sellers since 2013. Despite buyers having greater choice, high prices, mortgage rates, and economic uncertainties have continued to sideline buyers and weigh on home sales in 2025. According to data released Wednesday by the National Association of Realtors, existing home sales fell by 2.7 percent in June to a nine-month low of 3.9 million. Median home prices also rose to $435,300, marking a record high for June and the 24th consecutive month of year-over-year increases. Prior to the release, President Trump on Tuesday blamed persistently weak home sales on Federal Reserve Chair Jerome Powell, and the central bank's reluctance to lower interest rates, which would likely contribute to mortgage rates declining. "People aren't able to buy a house because this guy is a numbskull," Trump told reporters in the Oval Office. "He keeps the rates too high." Crystal Zschirnt, a Redfin Premier agent in Dallas, said: "Buyers have leverage. Some buyers are canceling deals because another home pops up in the same price range that they like better, or because they discover a flaw and get nervous it'll cost too much to fix. I've also heard of some buyers backing out because they're hoping home prices or mortgage rates are going to plummet soon, even though that's unlikely." Nancy Vanden Houten, Lead Economist at Oxford Economics, in comments shared with Newsweek on June's home sales data: "Existing home sales were weaker than expected in June, but we don't think the decline marks the start of a sustained downturn in sales. We look for sales to move sideways over the balance of 2025, before recovering in 2026 as rate cuts by the Federal Reserve get underway in earnest." "Increases in supply should temper home price growth and support sales. Median home prices rose to a record high in June, but the increase was at least partly due to seasonal quirks and we think price growth will trend lower in the second half of this year," she added. According to Redfin's forecasts, home prices are expected to decline one percent by the end of the year compared to 2024. Despite hopes of mortgage rates soon dropping to six percent, which analysts believe could inject much-needed momentum into U.S. home sales, it anticipates these remaining effectively unchanged at around 6.8 percent. Related Articles The Mortgage Rate Shift That Could Change the Housing MarketRenting vs. Buying: US Cities Where Renters Save the MostCalifornia Faces Pileup of Unsold HomesMap Shows Where Chinese Citizens Are Buying Property Across US 2025 NEWSWEEK DIGITAL LLC.
Newsweek
6 hours ago
- Business
- Newsweek
Number of Home Sales Falling Through Hits Record Level
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. The number of pending home sales that fell through hit record-levels for the month of June in 2025, as surging inventory and economic uncertainty continues to plague sellers. According to analysis by real estate firm and brokerage Redfin, over 57,000 home-sale agreements across the U.S. were cancelled in June, equating to around 15 percent of houses that were under contract in the month. This is up from 14 percent a year ago, and marks the highest cancellation rate for any June on record. Why It Matters Redfin said in its analysis that record levels of home sales falling through serves as a reflection of persistent economic unease among buyers, as well as the issues of affordability, inflation and high mortgage rates that may be weighing on their minds. The increased fiscal risks associated with homeownership have also contributed to rising levels of inventory, reducing sellers' leverage and putting power over the housing market more firmly in the hands of prospective buyers. What To Know Real estate agents who spoke to Redfin said buyers are becoming reluctant to finalize purchases due to economic uncertainties, in particular high mortgage rates, the potential impacts of tariffs, inflation and the possibility of a recession in the near future. Others noted that surging levels of inventory have put power in the hands of buyers, leading many to cancel deals when another home within their price range is listed. According to June Housing Market Trends Report, the number of homes for sale in the U.S. rose nearly 30 percent year-over-year, marking the 20th consecutive month of increases. The latest market report from Zillow, and recent data from the St. Louis Fed, similarly showed that housing inventory has risen to post-Covid highs. Analysis from Redfin in May said that high levels of inventory, coupled with subdued demand, had led to a buyer surplus of nearly 500,000. It said that this marks the largest gap between buyers and sellers since 2013. A for sale sign is displayed outside of a home for sale on August 16, 2024 in Los Angeles, California. A for sale sign is displayed outside of a home for sale on August 16, 2024 in Los Angeles, California. Patrick T. Fallon/AFP via Getty Images Despite buyers having greater choice, high prices, mortgage rates, and economic uncertainties have continued to sideline buyers and weigh on home sales in 2025. According to data released Wednesday by the National Association of Realtors, existing home sales fell by 2.7 percent in June to a nine-month low of 3.9 million. Median home prices also rose to $435,300, marking a record high for June and the 24th consecutive month of year-over-year increases. Prior to the release, President Trump on Tuesday blamed persistently weak home sales on Federal Reserve Chair Jerome Powell, and the central bank's reluctance to lower interest rates, which would likely contribute to mortgage rates declining. "People aren't able to buy a house because this guy is a numbskull," Trump told reporters in the Oval Office. "He keeps the rates too high." What People Are Saying Crystal Zschirnt, a Redfin Premier agent in Dallas, said: "Buyers have leverage. Some buyers are canceling deals because another home pops up in the same price range that they like better, or because they discover a flaw and get nervous it'll cost too much to fix. I've also heard of some buyers backing out because they're hoping home prices or mortgage rates are going to plummet soon, even though that's unlikely." Nancy Vanden Houten, Lead Economist at Oxford Economics, in comments shared with Newsweek on June's home sales data: "Existing home sales were weaker than expected in June, but we don't think the decline marks the start of a sustained downturn in sales. We look for sales to move sideways over the balance of 2025, before recovering in 2026 as rate cuts by the Federal Reserve get underway in earnest." "Increases in supply should temper home price growth and support sales. Median home prices rose to a record high in June, but the increase was at least partly due to seasonal quirks and we think price growth will trend lower in the second half of this year," she added. What Happens Next? According to Redfin's forecasts, home prices are expected to decline one percent by the end of the year compared to 2024. Despite hopes of mortgage rates soon dropping to six percent, which analysts believe could inject much-needed momentum into U.S. home sales, it anticipates these remaining effectively unchanged at around 6.8 percent.
Miami Herald
3 days ago
- Business
- Miami Herald
A New England city was just named the hottest US housing market again
Not unlike a drink cooler on a scorching summer day, the hottest metros in the U.S. real estate market are mostly trying to maintain their temperature in generally uncomfortable conditions. The residential housing market continues to show signs of softening amid an uncertain economic outlook for the remainder of 2025. Don't miss the move: Subscribe to TheStreet's free daily newsletter While qualified buyers still face 30-year mortgage rates hovering between 6-7% and elevated post-pandemic home prices, the macro dynamics are swinging away from sellers in many areas of the country. However, that's not exactly the case in the Northeast, where median list prices were up slightly in June compared to flat or declining averages in the South, West, and Midwest. June housing data revealed the inventory of homes climbed 28.9% year-over-year, now sitting north of one million active listings. While that's still 13% below pre-pandemic levels, it continues a trend dating back to late 2023. Sellers have been understandably slow to adjust to expectations after a recent seller-friendly run, but nationwide price cuts, median days on market and delistings were on the rise in June. Zillow's Market Heat Index still points to an overall neutral market, so things vary by region. Related: Nearly 95% of homebuyers in this major US city want to move away With demand holding steady as buyers seek more affordability outside of major metros, prices are still growing modestly in New England, as well as the upper Midwest. But that's not the case everywhere. "Despite this demand, only three of the nation's 50 largest metropolitan areas remain affordable for the typical household, highlighting the ongoing challenges around housing affordability," Realtor's Hannah Jones wrote. Already facing lagging construction and the largest supply gap among the four major U.S. regions, the Northeast also saw the slowest inventory growth in June (+17.6%). Those underlying factors are keeping agents especially busy in the greater New England area. For the second consecutive month, Springfield, Massachusetts - home of the Naismith Memorial Basketball Hall of Fame - was named the hottest U.S. market in June 2025 report. It was the city's fifth appearance in the top spot. More News: Moody's drops 2-word warning on housing marketFormer Warren Buffett exec makes bold real estate betDave Ramsey has blunt advice on bankruptcy for Americans buying a home now Situated 95 miles west of Boston and 27 miles north of Hartford, Connecticut, Springfield is nestled in southwestern Massachusetts and is home to nearly 155,000 people, approximately one-fourth the population of the capital city. Springfield also remains below the national average in median days on market (23 compared to 53 nationally) and median list price ($373,000 compared to $440,950 nationally in June). Amherst Town-Northampton (No. 6) and Worcester (No. 12) also represented Massachusetts high on the list, both with median list prices in the mid-500s. In total, 13 of the top 20 hottest markets were located in the Northeast, including Hartford (CT), Rochester (NY), Concord (NH), Manchester (NH), Norwich (CT), Binghamton (NY), Lancaster (PA), Erie (PA), Providence (RI), and Reading (PA). Related: Top 5 states where foreign buyers are scooping up US real estate The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Axios
15-07-2025
- Business
- Axios
NWA's manor-style homes are pricier, harder to find
The hottest homes on the market aren't the showiest — they're the ones buyers can still afford, finds. Why it matters: In today's expensive market, fierce competition for cheaper homes is driving up their prices. By the numbers: Median asking prices for English-inspired and Mediterranean homes were the highest in Northwest Arkansas, and each accounted for a smaller share of local listings than other styles. Nationally, median asking prices for colonial and traditional homes, some of the most affordable styles, jumped 5.6% in May from a year earlier. That's the biggest increase of any architectural style researchers analyzed. The other side: Sprawling Mediterranean-style homes, common in costly areas like Los Angeles and Miami, saw prices flatten. The big picture:"In general, higher-price home styles have appreciated less than lower-priced styles in the past year, a nod to economic and policy uncertainty as well as the rising cost of ownership," Hannah Jones wrote in the report. Reality check: No matter the look, home prices have soared since the pandemic. The median U.S. home sold in the first quarter cost roughly $417,000 — 33% more than in 2019, according to federal data. The average selling price for a single-family home during the second half of 2024 in Benton County was $449,750. It was $402,322 in Washington County. Zoom in: Colonial and traditional style homes, including the ever-present farmhouse, made up around half of all single-family listings in May.
Axios
10-07-2025
- Business
- Axios
Modest homes are winning the market
The hottest homes on the market aren't the showiest — they're the ones buyers can still afford, finds. Why it matters: In today's expensive market, fierce competition for cheaper homes is driving up their prices. By the numbers: Median asking prices for colonial and traditional homes, some of the most affordable styles, jumped 5.6% in May from a year earlier. That's the biggest increase of any architectural style researchers analyzed. The other side: Sprawling Mediterranean-style homes, common in costly areas like Los Angeles and Miami, saw prices flatten. The big picture:"In general, higher-price home styles have appreciated less than lower-priced styles in the past year, a nod to economic and policy uncertainty as well as the rising cost of ownership," Hannah Jones wrote in the report. Reality check: No matter the look, home prices have soared since the pandemic. The median U.S. home sold in the first quarter cost roughly $417,000 — 33% more than in 2019, according to federal data. Zoom in: Colonial and traditional style homes, including the ever-present farmhouse, made up around half of all single-family listings in May.
