Latest news with #WeeklyHousingTrendsReport
Economic Times
13 hours ago
- Business
- Economic Times
US staring at another 2008-like housing bubble crash? Trends show rising housing and rental crisis
Reuters Builders and sellers outpacing available buyers in South and West The American housing market is flashing serious warning signs. With mortgage rates climbing, home prices cooling in key metro areas, and rental housing out of reach for millions, real estate experts and analysts are drawing unsettling parallels to the catastrophic 2008 subprime mortgage today's market is fundamentally different, the growing affordability crunch, inventory glut, and stress on homeowners could lead to severe consequences if left unchecked. According to July 12, 2025 Weekly Housing Trends Report, homes in several metropolitan areas are sitting longer on the market. Miami has become one of the slowest housing markets in the U.S. with a median 83 days on market, more than double the time compared to the same period last year. Other cities like Orlando, Tampa, and New Orleans are also witnessing a steep decline in sales pace. What's most telling is the sharp year-over-year inventory rise in pandemic-fueled boomtowns, with builders and sellers outpacing available affordability is at a generational low. Mortgage rates, which were around 2.99% in mid-2021, are now hovering around 6.82% as of July 2025. Pair this with home prices that have surged by over 45% since 2020, and it's no surprise that many first-time buyers are locked out of the market. The number of new home sales fell to a three-decade low this spring, while pending home cancellations hit a record 15% just in May, according to clear signal of rising buyer hesitation and financial strain. As home prices have continued to rise—the average U.S. home now costing $355,328, up 2.7% in just one year. Data from the National Association of Home Builders shows that only 43% of U.S. households can now afford a $300,000 home, leaving nearly 76.4 million households priced out. The crisis isn't just in homeownership. A recent in-depth report by The Daily Upside highlights a more severe shortage on the rental side. The U.S. now faces a shortfall of over 7.1 million affordable rental units. Only 35 units are available for every 100 extremely low-income renter households, forcing a staggering 75% of these renters to spend more than half of their income on rent. This housing stress is contributing directly to America's growing homelessness problem, which saw its biggest spike last year since the Great further complexity is the over-supply in some markets and under-building in others. Pandemic-era construction booms in southern states like Florida and Texas have now turned into oversupply risks, while urban centers continue to face huge housing deficits. Housing starts have dropped 10% year-over-year, and builder sentiment is at its lowest since even point to speculative behavior in tech-driven areas, citing factors like investor hype and erratic crypto wealth—fueled by influencers like Elon Musk and the Dogecoin trend—as distorting local housing markets during 2021–2022. Now, many of those same areas are suffering steep corrections, mirroring the fallout from tech-centric housing markets during the 2008 2008 financial crisis started when banks gave risky home loans to people with poor credit—known as 'subprime borrowers.' These loans were packaged into complicated financial products and sold to investors around the world. When people started defaulting on their mortgages, the value of those investments crashed. This led to a wave of foreclosures, bank failures, and a global financial meltdown. Millions of people lost their homes, and the U.S. went into the worst economic downturn since the Great experts agree the lending standards today are stronger than they were in 2006–08, which could prevent a full-scale housing market collapse. However, the 'slow squeeze' of high costs, stagnating wages, and frozen market activity could trigger deep pain for specific regional economies. The cocktail of delayed home purchases, rising multi-generational housing, unaffordable rents, and increased mortgage stress could easily spill over into broader financial national housing data continues to trend downward and rental shortages grow more severe, policymakers and investors alike are watching closely.
Time of India
14 hours ago
- Business
- Time of India
US staring at another 2008-like housing bubble crash? Trends show rising housing and rental crisis
The American housing market is flashing serious warning signs. With mortgage rates climbing, home prices cooling in key metro areas, and rental housing out of reach for millions, real estate experts and analysts are drawing unsettling parallels to the catastrophic 2008 subprime mortgage crisis . While today's market is fundamentally different, the growing affordability crunch, inventory glut, and stress on homeowners could lead to severe consequences if left unchecked. Explore courses from Top Institutes in Select a Course Category Public Policy Data Science MBA Healthcare Design Thinking Data Analytics CXO Finance Management Artificial Intelligence Leadership healthcare Project Management Product Management Data Science MCA Degree Technology Operations Management Others Digital Marketing Skills you'll gain: Duration: 12 Months IIM Calcutta Executive Programme in Public Policy and Management Starts on undefined Get Details Skills you'll gain: Economics for Public Policy Making Quantitative Techniques Public & Project Finance Law, Health & Urban Development Policy Duration: 12 Months IIM Kozhikode Professional Certificate Programme in Public Policy Management Starts on Mar 3, 2024 Get Details What's happening in 2025 According to July 12, 2025 Weekly Housing Trends Report, homes in several metropolitan areas are sitting longer on the market. Miami has become one of the slowest housing markets in the U.S. with a median 83 days on market, more than double the time compared to the same period last year. Other cities like Orlando, Tampa, and New Orleans are also witnessing a steep decline in sales pace. What's most telling is the sharp year-over-year inventory rise in pandemic-fueled boomtowns, with builders and sellers outpacing available buyers. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Bargain Prices on Unsold Container Houses in Cebu - Check Them Out! Shipping Container Homes | Search Ads Search Now Housing affordability is at a generational low. Mortgage rates, which were around 2.99% in mid-2021, are now hovering around 6.82% as of July 2025. Pair this with home prices that have surged by over 45% since 2020, and it's no surprise that many first-time buyers are locked out of the market. The number of new home sales fell to a three-decade low this spring, while pending home cancellations hit a record 15% just in May, according to clear signal of rising buyer hesitation and financial strain. As home prices have continued to rise—the average U.S. home now costing $355,328, up 2.7% in just one year. Data from the National Association of Home Builders shows that only 43% of U.S. households can now afford a $300,000 home, leaving nearly 76.4 million households priced out. Live Events The crisis isn't just in homeownership. A recent in-depth report by The Daily Upside highlights a more severe shortage on the rental side. The U.S. now faces a shortfall of over 7.1 million affordable rental units. Only 35 units are available for every 100 extremely low-income renter households, forcing a staggering 75% of these renters to spend more than half of their income on rent. This housing stress is contributing directly to America's growing homelessness problem, which saw its biggest spike last year since the Great Recession . Adding further complexity is the over-supply in some markets and under-building in others. Pandemic-era construction booms in southern states like Florida and Texas have now turned into oversupply risks, while urban centers continue to face huge housing deficits. Housing starts have dropped 10% year-over-year, and builder sentiment is at its lowest since 2012. Some even point to speculative behavior in tech-driven areas, citing factors like investor hype and erratic crypto wealth—fueled by influencers like Elon Musk and the Dogecoin trend—as distorting local housing markets during 2021–2022. Now, many of those same areas are suffering steep corrections, mirroring the fallout from tech-centric housing markets during the 2008 crash. Looking back: What happened in 2008? The 2008 financial crisis started when banks gave risky home loans to people with poor credit—known as 'subprime borrowers.' These loans were packaged into complicated financial products and sold to investors around the world. When people started defaulting on their mortgages, the value of those investments crashed. This led to a wave of foreclosures, bank failures, and a global financial meltdown. Millions of people lost their homes, and the U.S. went into the worst economic downturn since the Great Depression. So is the US truly headed for another crash? Most experts agree the lending standards today are stronger than they were in 2006–08, which could prevent a full-scale housing market collapse. However, the 'slow squeeze' of high costs, stagnating wages, and frozen market activity could trigger deep pain for specific regional economies. The cocktail of delayed home purchases, rising multi-generational housing, unaffordable rents, and increased mortgage stress could easily spill over into broader financial instability. As national housing data continues to trend downward and rental shortages grow more severe, policymakers and investors alike are watching closely.
Yahoo
22-05-2025
- Business
- Yahoo
Home Prices Dip for the First Time Since March as Housing Market Cools
The price of the typical American home fell last week compared with a year ago, following nine straight weeks of flat or rising prices—as the number of for-sale properties continued to climb. For the first time since mid-March, the national median list price edged down by 1.1% year over year, as home sellers struggled to find a market amid persistent affordability challenges and prospective buyers' growing concerns about the state of their personal finances and job security, according to the Weekly Housing Trends Report. The home price softening should come as no surprise, considering that nearly 4 out of 5 home shoppers said they believe it's a bad time to buy, according to the Fannie Mae Home Purchase Sentiment Index released in April. This week, the mortgage rate ticked up to 8.86%, according to Freddie Mac. And while the median list price per square foot—which accounts for changes in home size—ticked up by 0.3% last week from the same time in 2024, indicating rising home values, it marked the slowest annual growth since September 2023, further reaffirming that buying demand is waning. 'These trends point to a gradually more favorable environment for buyers this spring, with more options and some price softening,' says economist Jake Krimmel. 'However, elevated mortgage rates and persistent affordability challenges continue to weigh on demand.' Fresh listings nationwide increased by 8.2% from a year ago, continuing their upward trajectory. 'The momentum that began earlier this spring remains strong, signaling a vibrant market as we head into late spring and early summer,' says Krimmel. 'With more fresh inventory hitting the market, buyers have better opportunities to find a home that fits their needs.' Meanwhile, the overall inventory, which includes both old and new listings, also continued trending up, registering a 29.7% year-over-year increase. This marks the 80th consecutive week of annual gains in the number of for-sale homes. All in all, there were more than a million homes for sale last week, the highest inventory level since December 2019. But while choices for buyers have expanded, it's important to note that overall U.S. housing supply remains far below levels before the COVID-19 pandemic, especially in the Midwest and Northeast. The pace of the domestic housing market continued to slow down last week, with the typical home waiting for a buyer six days longer than a year ago. 'It's the longest stretch of additional days on the market since March, giving buyers valuable time to consider their options,' points out Krimmel. On average, it took roughly 50 days to sell a home in May. For context, during the pandemic, a home would be snapped up in around 33 days. Although annual inflation ticked down to 2.3% in April, its lowest level in 50 months, Krimmel stresses that broader economic uncertainty lingers—and prospective buyers are taking note, with consumer sentiment remaining relatively low. Looking ahead, the Federal Reserve has signalled interest rates could stay higher for longer, and mortgage rates recently edged up again, creeping back toward 7%. 'Despite improvements in several key housing supply indicators, housing activity is expected to remain muted until borrowing costs or prices come down more meaningfully,' concludes Krimmel. 'The Bachelorette' Star Jenn Tran Reveals Cute Miami Apartment Where She's Hunkering Down To Finally Finish Physician's Assistant Training Natalie Portman Reveals Real Reason She Quit Los Angeles To Raise Her 2 Kids in France Bryson DeChambeau and Rory McIlroy's Rivalry Is Heating Up—but Which of the PGA Championship Stars Has Hottest Home?
