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Newsweek
28-05-2025
- Business
- Newsweek
Map Shows Cities With Biggest Rise in Home Sale Cancellations
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Home sale cancellations surged across the country in April, as buyers either got cold feet amid growing economic uncertainty or saw a better opportunity on a market that is facing quickly rising inventory levels. In no other U.S. metropolitan area, buyers walked out of pending home purchasing deals as much as in Atlanta, Georgia, where one in five sales fell through, according to a recent Redfin report. Why It Matters While housing inventory levels have risen significantly across the U.S. over the past year, easing the shortage that contributed to skyrocketing prices since the pandemic, buyers are still struggling with historically high mortgage rates and rising costs. Americans trying to buy a home this year are facing more options on the market, but they are not necessarily in a better financial position to purchase them. On top of that, volatility in the markets and widespread fears of a looming recession are pushing buyers on the side of caution, making them think twice about whether they want to make such a big purchase this year. As a result of these dynamics, home sales are dwindling and cancellations are rising, even as inventory is finally growing. What To Know At the national level, roughly 56,000 home sales were canceled in April, equal to 14.3 percent of all purchase agreements that month, up from 13.5 percent a year earlier. In Atlanta, the metro that led the U.S. with the highest number of home sale cancellations in April, 20 percent of home-purchase agreements fell through, up from 17.6 percent last year. "We suspect that since Atlanta has been an investor hotspot in recent years, this could be the impact of investors backing out of deals, which might account for part of this trend," Redfin chief economist Daryl Fairweather told Newsweek. Atlanta was followed by Orlando, Florida (19.4 percent), Tampa, Florida (19.1 percent), Riverside, California (19.1 percent) and Miami, Florida (18.9 percent). Rounding out the top 10 were more Florida and Texas cities, among others, including Fort Lauderdale, Florida (18.9 percent), Fort Worth, Texas (18.7 percent), Jacksonville, Florida (18.4 percent), and San Antonio, Texas (18.2 percent). Las Vegas, Nevada, was at 18.6 percent. "In Florida and Texas, rising insurance costs are giving buyers pause," Fairweather said. "Buyers often don't know their insurance costs until after a deal goes pending, which can cause sticker shot or the inability to get insurance altogether." The biggest increases in home cancellations were reported in Anaheim, California (up 3.1 percentage points from a year earlier), Seattle, Washington (up 2.8 points), Milwaukee, Wisconsin (up 2.7 points), Los Angeles, California (up 2.6 points) and Nashville, Tennessee (up 2.6 points). The lowest cancellations rates, on the other hand, were in Nassau County, New York, (4.8 percent), Boston, Massachusetts (8.1 percent), Montgomery County, Pennsylvania (8.1 percent), Minneapolis, Minnesota (8.4 percent), New York, New York (8.7 percent), Milwaukee, Wisconsin (9.2 percent), Seattle, Washington (9.8 percent), Newark, New Jersey (9.8 percent), Warren, Michigan (10.4 percent) and New Brunswick, New Jersey (10.5 percent). "Demand for homes especially in more affordable Northeast metros has been stable," Fairweather said. "Even though there is economic uncertainty, there is still economic growth, and people want to own homes if they feel like they personally can afford it." What People Are Saying Fairweather told Newsweek about the rise in home sale cancellations: "The economy is uncertain right now, and it's causing buyers to get the jitters. Sometimes, sellers will offer concessions to get a deal to go through, but both parties can't always see eye-to-eye on terms, which causes deals to fall apart." National Association of Realtors chief economist Lawrence Yun said of falling existing home sales in a statement shared with Newsweek: "Pent-up housing demand continues to grow, though not realized. Any meaningful decline in mortgage rates will help release this demand." What Happens Next While the rise in home sale cancellations indicates that many American prospective homebuyers are still struggling, it also suggests that their negotiating power is increasing. Experts said that much of the U.S.—with the exception of areas where the housing shortage is more acute, like the Northeast—is now a buyers' market, meaning that they have the upper hand. Swooping in after a pending home sale has fallen through can be a great way to get a discount from a discouraged seller, Redfin realtors said.
Yahoo
24-05-2025
- Business
- Yahoo
More economists think home prices will fall this year
More than a decade of near-continuous home price appreciation may end this year. Amid growing signs of a weak spring for home sales — sellers are listing but buyers aren't buying — more housing economists are expecting a slight dip in average home prices this year. Redfin now expects median home prices to finish 2025 about 1% lower than 2024, while Zillow is calling for a 1.4% decline. "Inventory is definitely contributing," said Daryl Fairweather, Refin's chief economist. "It's also just this disconnect between where sellers' expectations are and what buyers are willing to pay. Homes are falling out of contract more. All of that is an early indication that prices are going to weaken." If the predictions hold true, 2025 would be the first year home prices have fallen since 2023, when a sharp spike in mortgage rates drastically reduced affordability and priced many would-be buyers out of the market. 2023 was also something of a blip. Buyers returned when mortgage rates dropped from highs near 8%, and they quickly bid up prices again when faced with little supply. Median home prices continued to set new records last year and into 2025. Now there are signs the market is shifting. The combination of sky-high prices and mortgage rates near 6.8% has kept many buyers sidelined even as inventory rises to levels not seen since mid-2020. 'The total number of homes for sale is up 20% from a year ago,' said Orphe Divounguy, a senior economist at Zillow. 'It's the best thing that could happen for buyers. It means buyers have more bargaining power, and they have more options to choose from.' Even as the nationwide median home price looks poised to drop, the trend doesn't hold in all markets. In the four weeks through May 18, median sales prices declined in 10 of the top 50 largest metropolitan areas in the country, according to Redfin data. And Fannie Mae's Home Price Appreciation Index, which tracks single-family homes, calls for a 4.1% jump in prices this year, firmly positive but below last year's 5.8% increase. Cities where homebuilding has been robust in recent years, like Dallas, Houston, Austin, Texas, and Tampa, Fla., saw some of the largest price declines this May compared to a year earlier. Meanwhile, prices are still rising in parts of the Northeast and the Midwest. Median sales prices were up 13.8% in the Philadelphia area through May 18, compared to a year earlier. Miami prices gained more than 10%, while the Detroit metro area saw a 9.5% jump. Buyers are being picky for now. Existing home sales in April were the most sluggish for that month since 2009, during the depths of the financial crisis. Sales were down from a year earlier in all regions of the country except the Northeast, where they held flat. Home sales that were completed in April usually went under contract in February or March, slightly before the traditional peak homebuying season got underway. Divounguy, though, is optimistic that sales will pick up in the summer as some of the recent economic uncertainty fades and prospective buyers who put their plans on hold get comfortable enough to return to the market. He expects home sales to rise 1.4% compared to last year as affordability improves slightly. Claire Boston is a senior reporter for Yahoo Finance covering housing, mortgages, and home insurance. Sign up for the Mind Your Money newsletter Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Utahns need 156-hour work week to afford median rent, report says
SALT LAKE CITY () — How does a 156-hour work week sound to you? That's of an apartment in Utah at the state's minimum wage of $7.25 as of 2024, according to a new report by Redfin. And that's assuming only 30% of your income is spent on rent. The online realtor said this estimate is actually better than the year before, which would have required a 164-hour week, but it's significantly higher than the average minimum-wage earner in the United States at 106 hours per week. But Utah's 156 hours still places it among the worst in the nation. According to Redfin's data, Utah is behind only New Hampshire (224 hours per week), Pennsylvania (183), Idaho (165), Georgia (160), and Wisconsin (159). Remains found in Salt Lake confirmed to be University of Utah student who disappeared in 1973 'It's obviously not realistic for most people to clock into their job for over 100 hours a week, but this thought experiment shines light on the massive rental affordability gap between the average American and our country's lowest earners,' said Daryl Fairweather, Redfin Chief Economist. 'It's virtually impossible for a minimum-wage worker to afford the typical apartment on their own, which is why many have to find ways to reduce their housing expenses, like living with roommates or family members.' Redfin's data shows that the median asking rent peaked in August 2022 at $1,704, and while it has gone down slightly, it's still $271 higher than pre-pandemic levels. Over the past few years, Utah's lawmakers and policy leaders have been advocating to make more affordable housing and living spaces across the Beehive State. You can adopt a pet for free this weekend in Salt Lake for 'National Pet Month' At the state level, Gov. Spencer Cox has spoken at length about his ambitious goal to build 35,000 new starter homes in Utah over the next four years. Meanwhile, in 2024, Salt Lake City Mayor Erin Mendenhall said affordable housing has been a priority for her and her administration. Earlier this year, Mendenhall celebrated the opening of the 144 South Apartments, located at 144 South and 500 East. The new building offers affordable housing for residents earning at or below 60% of the area median income and was funded through a $1.7 million loan from the Redevelopment Agency of Salt Lake City's Housing Development Loan Program. Could the penny soon be a thing of the past? Utahns need 156-hour work week to afford median rent, report says Allons-y! Two more beloved 'Doctor Who' guests slated for FanX this September 14 homes evacuated by gas leak in Lehi Large flames at Weber County structure fire fills air with heavy smoke Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
New York Times
15-05-2025
- Business
- New York Times
Permits to Build New Apartments Have Plummeted
Apartment construction boomed during the pandemic as the transition to remote work allowed more Americans to relocate, fueling rental demand across the country. But two years later, permits to build new units have receded to below prepandemic levels, according to a recent study by Redfin. Researchers compared census data on permits issued for multifamily buildings of five or more units during three time periods: prepandemic (April 2014 to March 2020), mid-pandemic (April 2020 to March 2023), and post-pandemic (April 2024 to March 2025). During the post-pandemic period, developers nationwide have received permits to build about 12 multifamily housing units per 10,000 people — a 6 percent decline from the prepandemic period and a roughly 27 percent decline from the pandemic building boom. Among the 78 U.S. metro areas with populations of at least 750,000, the study found that 63 percent have scaled back on building apartments since March 2023. One exception: high-demand cities in the Sun Belt region. Austin, Texas, topped all metros with about 65 permits issued per 10,000 residents. Cape Coral, Fla., was second, with about 60 permits per 10,000 people. Following were North Port, Fla. (53 permits), Raleigh, N.C. (just over 41), and Orlando, Fla. (just under 41). Why is apartment construction soaring in the Sun Belt and plunging in other areas? In part, because builders there face fewer restrictions. 'Austin is still booming because they are allowing for more types of homes to be built by loosening restrictions on things like minimum lot sizes,' said Daryl Fairweather, Redfin's chief economist. Cape Coral, Fla., is helping to facilitate construction by expanding 'utility access that opens up the opportunity to build housing in places that wouldn't have been possible before,' she said. Economic uncertainty has also played a role in the building decline. Ms. Fairweather said that developers have dialed back because of high interest rates, volatility in the cost of materials because of tariffs, and uncertainty over the effects of deporting construction workers, many of whom are undocumented. New Apartments in Your City? The metros with the most and fewest permits issued for new apartments per 10,000 residents from April 2024 to March 2025. Fewest Most PERMITS PER 10,000 RESIDENTS PERMITS PER 10,000 RESIDENTS METRO METRO Stockton, Calif. Bakersfield, Calif. Providence, R.I. El Paso Baton Rouge, La. Birmingham, Ala. New Orleans Cleveland Fresno, Calf. Tulsa, Okla. 0.0 0.8 1.6 1.6 1.9 2.3 2.5 2.5 3.5 3.6 Austin, Texas Cape Coral, Fla. North Port, Fla. Raleigh, N.C. Orlando, Fla. Columbus, Ohio Omaha Richmond, Va. Charlotte, N.C. Nashville 64.5 59.6 53.3 41.1 40.7 37.9 37.5 35.4 30.0 29.8 Fewest PERMITS PER 10,000 RESIDENTS METRO Stockton, Calif. Bakersfield, Calif. Providence, R.I. El Paso Baton Rouge, La. Birmingham, Ala. New Orleans Cleveland Fresno, Calf. Tulsa, Okla. 0.0 0.8 1.6 1.6 1.9 2.3 2.5 2.5 3.5 3.6 Most PERMITS PER 10,000 RESIDENTS METRO Austin, Texas Cape Coral, Fla. North Port, Fla. Raleigh, N.C. Orlando, Fla. Columbus, Ohio Omaha Richmond, Va. Charlotte, N.C. Nashville 64.5 59.6 53.3 41.1 40.7 37.9 37.5 35.4 30.0 29.8 Source: Redfin By The New York Times For weekly email updates on residential real estate news, sign up here.
Yahoo
12-05-2025
- Business
- Yahoo
Is a housing market bubble about to burst?
Listen and subscribe to Financial Freestyle on Apple Podcasts, Spotify, or wherever you find your favorite podcasts. In this episode of Financial Freestyle, host Ross Mac joins Daryl Fairweather, chief economist at Redfin. Daryl discusses the current high prices in the housing market, whether the American Dream is still affordable, and her new book "Hate The Game." If you're considering buying a home, asking for a raise, or are curious about applying game theory to your life, you won't miss this week's Financial Freestyle with Ross Mac on Yahoo Finance is dedicated to promoting economic prosperity for all. Through expert insights, practical advice, and inspiring success stories, we empower you to build and grow wealth. Join us on this transformative journey toward financial freedom and inclusive economic growth. This post was written by Dennis Golin. Sign in to access your portfolio
