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Yahoo
6 days ago
- Business
- Yahoo
What Would It Take To Make Homebuying Affordable for the Middle Class Again?
Between home prices remaining high and an uncertain future for mortgage interest rates dropping, many middle-class homebuyers and sellers may wonder when or if the market will ever become affordable again. Find Out: Read Next: While it's true that most middle-class Americans won't see the kind of easy entry markets their parents and grandparents did, there may still be some in roads. Real estate experts weighed in on what it will take to make homebuying affordable for the middle class again. The Tariff Conundrum The current market is experiencing a lot of what Jeff Lichtenstein, CEO and broker at Echo Fine Properties called 'a lot of damned if you do and damned if you don't.' He explained, 'There is inflation going on right now because of the tariffs and deportations of labor which will affect building homes and maintenance of homes like putting on a roof or landscaping,' he said. Those conditions make it harder for the Federal Reserve Board (the Fed) to lower rates as they said they would have done that already if not for the tariffs, Lichtenstein explained. 'It also affects builders from putting up specs and building more which contributes more to the 4 million home shortage.' Check Out: A Drop in Mortgage Rates That said, even a small mortgage rate drop could really shift things for the middle class. 'Mortgage rates don't have to go down much — 6% is the magic number,' Lichtenstein explained. He noted that when rates even got close to 6%, as they did last fall, 'it spiked a lot of buying frenzy and then once rates went closer to seven, the buying stopped.' The problem is that a lot of the buyers are sellers and the rate differential from 3% or 4% to 7% 'is causing sellers to hang onto their precious interest rate like Gollum in 'Lord of the Rings,'' he said. That clogs up the market. Consider Tiny Houses Another possible angle for those seeking affordability is tiny homes. 'Tiny houses can be so much less expensive that it helps with young people purchasing because there's less land needed and the cost of the structure is more affordable,' Lichtenstein said. 'That could get the market moving.' While some states and cities have good zoning for these small homes, others are still dragging their heels, and it may take legislation pushes to facilitate that change. Boomer Downsizing As baby boomers continue to downsize in their elder years or even move into assisted living, Lichtenstein believes that will start to free up homes. However, that could still take another six to seven years, as many boomers are still in their early 60s. Subsidies and Tax Credits Most of the changes mentioned above will be slow to have an impact. While government subsidies and tax credits may not change the overall affordability of homes generally, they do help close the gap for middle-class buyers, according to Paul Epperley, president at Greater Fort Worth Association of Realtors. Down payment assistance and first-time homebuyer tax credits are especially helpful, he explained, since down payments are typically the most considerable financial burden or hurdle for those who are renting. 'A grant to help cover a percentage of the down payment can get more people into their first home and first-time homebuyer tax credits also provide financial relief after the purchase.' An 'OBBB' Tax Credit Epperley pointed out that one of the most immediate impacts of the 'One Big Beautiful Bill' (OBBB) is the restoration and extension of the mortgage insurance premium deduction, 'a major benefit for first-time and low-down-payment homebuyers.' Many buyers can only put down less than 20%, triggering private mortgage insurance (PMI), which can cost between $1,500 and $3,000 annually, Epperley explained. 'By making these costs tax-deductible, the financial burden of homeownership is reduced and saves buyers potentially $2,000 or more each year.' A Trifecta of Change According to Jacob Naig, a licensed real estate agent, investor, contractor and owner of WeBuyHousesinDesMoines, the market needs 'a three front correction: reform of zoning, the search for construction efficiencies and interest rate stabilization.' He said there is no 'silver bullet' to move affordability without moving the others. Depending on the state or locality, policy changes allowing for smaller lot sizes, duplexes and accessory dwelling units by right, could 'immediately expand infill options without the need for new streets or schools,' Naig said. Incentives for Builders and Developers Another way to improve the market would be to offer incentives for builders and developers by expediting approval, decreasing or postponing impact fees and providing for tax incentives for the construction of homes below $300,000, Naig said. Naig suggested that developers feel prohibited from building affordable homes due to a variety of high prices, including land prices, fees, code-compliance costs and labor shortages, which are all pushing break-even pricing above what middle-income buyers can afford. 'Builders respond to economics. Shift the economics,' he said. Property Tax Reforms While every state has different approaches to property taxes, in some states, those taxes are exorbitant, according to Epperley. In Texas, for example, he said, 'property taxes are one of the most significant pain points and appraisal values can jump year over year.' Property tax reform that caps or reduces property tax growth in states with high taxes could make a big dent for homeowners. Wage Increases A last way to make housing more affordable has little to do with the housing market at all, Naig suggested — that would be 'to see consistent and meaningful wage increases above inflation.' However, he's clear that won't happen without significant policy changes around minimum wage, benefits and labor incentives for housing. Overall, it will take a variety of small changes, at the state and federal level, before some middle-class Americans can really call homebuying affordable again, and even then there's no guarantee. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 Clever Ways To Save Money That Actually Work in 2025 Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why This article originally appeared on What Would It Take To Make Homebuying Affordable for the Middle Class Again? Sign in to access your portfolio
New York Post
11-07-2025
- Business
- New York Post
Homes are taking longer to sell in these once-popular markets
Some of the hottest markets in the country are showing signs they might be in trouble as homes linger on the market longer—and those formerly flourishing metros aren't unique by any means. Among the 50 largest U.S. metro areas, 39 saw homes staying longer than last year, according to the June 2025 housing market report. All four regions—the South, Northeast, Midwest, and West—saw increases in time on the market, reflecting broader cooling trends, with the sunnier states seeing the longest slowdowns. Advertisement 4 Nashville, TN, tops the list of metro areas that see the longest time-on-the-market increase year over year. Kevin Ruck – Year over year, homes in the South spent eight more days on average on the market; the West showed seven more days; the Northeast three more days; and only the Midwest was essentially the same with one more day, due to its continued affordability, climate migration, and lack of inventory. And just over half (26) of the top 50 markets are now seeing listings sit longer than their pre-pandemic averages, with almost all of them in the South and West, according to the report. It's another indication of the geographic divergence in housing market conditions. Where is it taking the longest to sell? Advertisement These metros are seeing the longest time-on-the-market increases year over year: Nashville, TN (+20 days) Orlando, FL (+15 days) Miami, FL (+15 days) Advertisement Tucson, AZ (+12 days) It's not shocking that two of the four markets are in Florida, given the Sunshine State's issues with higher condo fees in the wake of the Champlain Towers collapse, skyrocketing insurance costs or the difficulty of procuring it, and the increase in extreme weather events. 'It's just returning to normal, how it was pre-COVID,' Jeff Lichtenstein, CEO of Echo Fine Properties in Miami, tells 'Miami has been in the news lately for slowdowns overall, but it's mostly due to the condo market. Homes are still being sold, albeit at a slower pace.' 4 The Orlando, FL, market is a mismatch between what buyers want and what sellers have, according to real estate expert. Kevin Ruck – Advertisement Another factor has entered the mix: President Donald Trump's crackdown on illegal immigration. 'Deportations and some foreigners feeling unwelcome have stopped foreign purchases from occurring,' Lichtenstein says. 'That has slowed down Miami, which is an international market dependent on South and Central America, Canada, and other countries.' Foreigners who would have previously purchased a property for their Florida college-bound children have also been scared off, he says. However, the agent sees hope on the horizon in the form of New York City's liberal Democratic mayoral candidate Zohran Mamdani. Lichtenstein adds that the election 'has already prompted interest from New Yorkers and businesses to escape more taxes, as a lot of the financial firms in New York City on Wall Street have already relocated to Miami.' 4 Miami is also showing signs of a slowdown of condo purchases on the market, while single-family homes continue to be a hot commodity. Earth Pixel LLC. – Branden Rivero of Prop Hunters in Miami Lakes says that while he clearly sees the slowdown in condos, single-family homes are still a hot commodity. 'There's a huge difference between single-family and condo, complete ends of the spectrum,' he tells 'We still lack quality inventory for the single family. Depending on the area, I still have homes sold before they are even listed.' Advertisement And Jill Penman of ONE/Sotheby's International Realty, who sells in South Florida, says that buyers and sellers are caught in a dance of one having little motivation to sell due to being locked in to their mortgage rates and the other being disinclined to shell out COVID-19-era prices. 'They aren't willing to overpay and will ride it out,' she says of these buyers. As for Orlando, local agent Martin Orefice of Rent to Own Labs says inventory is part of the problem—not necessarily the lack of it, but the mismatch between what buyers want and what sellers have. 4 'I do not think [the slowdown] is a bad thing,' says Jill Penman of ONE/Sotheby's International Realty. Eric – Advertisement 'Most of the homes on the market are big and expensive, and most people looking for homes are younger first-time homebuyers, many of whom work at local theme parks or have recently graduated from UCF or other nearby universities,' he tells 'People just can't afford the homes that are on offer. Even retirees, the other big source of growth for us, are looking to downsize and live near water.' Good news for buyers All in all, agents see the slowdown as an opportunity to separate the wheat from the chaff. In a time when the American dream of owning a home is out of reach for so many, this can only be welcome news to buyers as sellers are forced to let go of their inflated prices. Advertisement 'I do not think [the slowdown] is a bad thing,' Penman says. 'It just weeds out real motivated sellers from the ones that are not serious.' The report aligns with that sentiment. 'With growing inventory and homes taking longer to sell, the U.S. housing market is undoubtedly shifting in a buyer-friendly direction,' the report notes, finding more price reductions in 2025 than in any year of data. However, this signals selective discounts, not widespread plummets. In June, the national median list price held at $440,950, essentially flat since the previous month. However, prices are beginning to fall in the West and South, with -8% and -9% declines, respectively.
Yahoo
17-06-2025
- Business
- Yahoo
Sellers are flooding the home market while buyers sit on their hands in these US cities — creating a historic imbalance
After years of sellers calling the shots, some of the hottest pandemic-era housing markets are now grappling with a surplus of listings — and not enough willing buyers. According to real estate brokerage Redfin, April saw nearly half a million more homes listed than buyers in the market, the largest gap since at least 2013. But this supply surge hasn't translated into a wave of closings. Instead, home sales have stalled in many areas, particularly across the Southeast and Southwest, where inventory has ballooned past pre-pandemic norms. In Miami, for example, there were almost three times as many sellers as buyers in April, Redfin data show. Jeff Lichtenstein, president of Echo Fine Properties in Palm Beach Gardens, Florida, told the Wall Street Journal sellers are increasingly slashing asking prices to entice cautious buyers. 'There will be more price reductions that are going on, and more willingness to sell at a lower number, especially in the next couple months,' he said. 'We've definitely seen people who have taken losses.' These conditions mark a sharp reversal for the Sunbelt, which saw home values soar and bidding wars erupt during the COVID years. Now, many of those same metros — Atlanta, Austin, Phoenix and Tampa among them — are seeing listings linger, as affordability challenges, higher mortgage rates and buyer wariness take hold. Nationally, home prices are still rising, but that growth is cooling. US prices climbed 1.4% in May from a year earlier, according to Intercontinental Exchange, down from 2% annual growth in April. Twenty-four of the 100 largest metro areas posted year-over-year price declines in May, with the bulk of those concentrated in the Sunbelt. 'There's not even usually a home for sale in our neighborhood, and I think there's three or four right now,' Dirk Lovelace, who listed his Tryon, NC, house in April, told the Journal. After relocating to South Carolina, he cut the asking price but still hasn't received an offer. 'The current sentiment is, the market's probably going to go down further, so people are just waiting,' he said. Buyers appear to be in no rush. Home prices have surged more than 50% nationwide over the past five years, and mortgage rates remain elevated above 6.5%. Though active listings in May reached their highest point since 2019, they are still about 14% below typical pre-pandemic levels, according to Still, the gap between buyers and sellers is widening, in part because many homeowners are listing out of necessity rather than opportunity. Some are relocating for jobs, while others are exiting investment properties as costs rise or in anticipation of a price dip. 'It doesn't feel like buyer demand is going to come back that much,' Chen Zhao, Redfin's head of economic research added. 'Prices are just too high.' In markets like Denver, longtime agent Elle Pappas told The Journal the tone of conversations with buyers has shifted dramatically from the frenetic pace of recent years. 'The immediate conversation, even upon the first appointment I have with them, is, 'How much of a discount do you think I can get? How many concessions can I get?'' Carley and Garrett Kapelski, who had previously paused their home search due to competition in the Kansas City suburbs, said they've noticed a shift this spring. 'We feel a lot less stressed this time,' Garrett Kapelski said. 'If we wait another 30, 60 days, maybe you'll see these people that thought they would be able to sell their houses quickly, and maybe already bought another home, start being willing to wiggle a little bit.' Much of the current slowdown can be traced to the uneven recovery in housing supply following the 2006 to 2009 crash, coupled with the lock-in effect of low pandemic-era mortgage rates. But that trend may be easing. New-home construction has picked up since the pandemic, and more homeowners are beginning to list — some simply because they can't wait any longer, whether that is due to job transfers, having children or otherwise, Pappas explained.
Yahoo
17-06-2025
- Business
- Yahoo
Sellers are flooding the home market while buyers sit on their hands in these US cities — creating a historic imbalance
After years of sellers calling the shots, some of the hottest pandemic-era housing markets are now grappling with a surplus of listings — and not enough willing buyers. According to real estate brokerage Redfin, April saw nearly half a million more homes listed than buyers in the market, the largest gap since at least 2013. But this supply surge hasn't translated into a wave of closings. Instead, home sales have stalled in many areas, particularly across the Southeast and Southwest, where inventory has ballooned past pre-pandemic norms. In Miami, for example, there were almost three times as many sellers as buyers in April, Redfin data show. Jeff Lichtenstein, president of Echo Fine Properties in Palm Beach Gardens, Florida, told the Wall Street Journal sellers are increasingly slashing asking prices to entice cautious buyers. 'There will be more price reductions that are going on, and more willingness to sell at a lower number, especially in the next couple months,' he said. 'We've definitely seen people who have taken losses.' These conditions mark a sharp reversal for the Sunbelt, which saw home values soar and bidding wars erupt during the COVID years. Now, many of those same metros — Atlanta, Austin, Phoenix and Tampa among them — are seeing listings linger, as affordability challenges, higher mortgage rates and buyer wariness take hold. Nationally, home prices are still rising, but that growth is cooling. US prices climbed 1.4% in May from a year earlier, according to Intercontinental Exchange, down from 2% annual growth in April. Twenty-four of the 100 largest metro areas posted year-over-year price declines in May, with the bulk of those concentrated in the Sunbelt. 'There's not even usually a home for sale in our neighborhood, and I think there's three or four right now,' Dirk Lovelace, who listed his Tryon, NC, house in April, told the Journal. After relocating to South Carolina, he cut the asking price but still hasn't received an offer. 'The current sentiment is, the market's probably going to go down further, so people are just waiting,' he said. Buyers appear to be in no rush. Home prices have surged more than 50% nationwide over the past five years, and mortgage rates remain elevated above 6.5%. Though active listings in May reached their highest point since 2019, they are still about 14% below typical pre-pandemic levels, according to Still, the gap between buyers and sellers is widening, in part because many homeowners are listing out of necessity rather than opportunity. Some are relocating for jobs, while others are exiting investment properties as costs rise or in anticipation of a price dip. 'It doesn't feel like buyer demand is going to come back that much,' Chen Zhao, Redfin's head of economic research added. 'Prices are just too high.' In markets like Denver, longtime agent Elle Pappas told The Journal the tone of conversations with buyers has shifted dramatically from the frenetic pace of recent years. 'The immediate conversation, even upon the first appointment I have with them, is, 'How much of a discount do you think I can get? How many concessions can I get?'' Carley and Garrett Kapelski, who had previously paused their home search due to competition in the Kansas City suburbs, said they've noticed a shift this spring. 'We feel a lot less stressed this time,' Garrett Kapelski said. 'If we wait another 30, 60 days, maybe you'll see these people that thought they would be able to sell their houses quickly, and maybe already bought another home, start being willing to wiggle a little bit.' Much of the current slowdown can be traced to the uneven recovery in housing supply following the 2006 to 2009 crash, coupled with the lock-in effect of low pandemic-era mortgage rates. But that trend may be easing. New-home construction has picked up since the pandemic, and more homeowners are beginning to list — some simply because they can't wait any longer, whether that is due to job transfers, having children or otherwise, Pappas explained. 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
New York Post
16-06-2025
- Business
- New York Post
Sellers are flooding the home market while buyers sit on their hands in these US cities — creating a historic imbalance
After years of sellers calling the shots, some of the hottest pandemic-era housing markets are now grappling with a surplus of listings — and not enough willing buyers. According to real estate brokerage Redfin, April saw nearly half a million more homes listed than buyers in the market, the largest gap since at least 2013. But this supply surge hasn't translated into a wave of closings. Instead, home sales have stalled in many areas, particularly across the Southeast and Southwest, where inventory has ballooned past pre-pandemic norms. Advertisement 6 The US housing market is experiencing a historic imbalance, with nearly 500,000 more sellers than buyers in April — the largest gap since at least 2013, according to Redfin. Cavan – In Miami, for example, there were almost three times as many sellers as buyers in April, Redfin data show. Jeff Lichtenstein, president of Echo Fine Properties in Palm Beach Gardens, Florida, told the Wall Street Journal sellers are increasingly slashing asking prices to entice cautious buyers. Advertisement 'There will be more price reductions that are going on, and more willingness to sell at a lower number, especially in the next couple months,' he said. 'We've definitely seen people who have taken losses.' 6 While the inventory of homes for sale is finally rising, many buyers remain on the sidelines due to high prices, elevated mortgage rates and economic uncertainty. Andy Dean – These conditions mark a sharp reversal for the Sunbelt, which saw home values soar and bidding wars erupt during the COVID years. Now, many of those same metros — Atlanta, Austin, Phoenix and Tampa among them — are seeing listings linger, as affordability challenges, higher mortgage rates and buyer wariness take hold. Advertisement Nationally, home prices are still rising, but that growth is cooling. US prices climbed 1.4% in May from a year earlier, according to Intercontinental Exchange, down from 2% annual growth in April. Twenty-four of the 100 largest metro areas posted year-over-year price declines in May, with the bulk of those concentrated in the Sunbelt. 6 Home prices have surged over 50% in five years, and rates above 6.5% continue to dampen demand. Gian – 'There's not even usually a home for sale in our neighborhood, and I think there's three or four right now,' Dirk Lovelace, who listed his Tryon, NC, house in April, told the Journal. Advertisement After relocating to South Carolina, he cut the asking price but still hasn't received an offer. 'The current sentiment is, the market's probably going to go down further, so people are just waiting,' he said. Buyers appear to be in no rush. Home prices have surged more than 50% nationwide over the past five years, and mortgage rates remain elevated above 6.5%. Though active listings in May reached their highest point since 2019, they are still about 14% below typical pre-pandemic levels, according to Still, the gap between buyers and sellers is widening, in part because many homeowners are listing out of necessity rather than opportunity. 6 Sellers, facing life changes or rising costs, are listing properties and increasingly cutting prices or offering concessions to attract hesitant buyers. Ryan Tishken – Some are relocating for jobs, while others are exiting investment properties as costs rise or in anticipation of a price dip. 'It doesn't feel like buyer demand is going to come back that much,' Chen Zhao, Redfin's head of economic research added. 'Prices are just too high.' In markets like Denver, longtime agent Elle Pappas told The Journal the tone of conversations with buyers has shifted dramatically from the frenetic pace of recent years. Advertisement 'The immediate conversation, even upon the first appointment I have with them, is, 'How much of a discount do you think I can get? How many concessions can I get?'' 6 Despite the increase in supply — now at its highest since 2019 — existing-home sales in April hit their slowest pace for that month since 2009. seanlockephotography – Carley and Garrett Kapelski, who had previously paused their home search due to competition in the Kansas City suburbs, said they've noticed a shift this spring. 'We feel a lot less stressed this time,' Garrett Kapelski said. 'If we wait another 30, 60 days, maybe you'll see these people that thought they would be able to sell their houses quickly, and maybe already bought another home, start being willing to wiggle a little bit.' Advertisement Much of the current slowdown can be traced to the uneven recovery in housing supply following the 2006 to 2009 crash, coupled with the lock-in effect of low pandemic-era mortgage rates. 6 Buyers now hold more negotiating power, especially in Sunbelt markets like Miami, where listings far outnumber house hunters. In contrast, parts of the Northeast and Midwest remain competitive. Gian – But that trend may be easing. New-home construction has picked up since the pandemic, and more homeowners are beginning to list — some simply because they can't wait any longer, whether that is due to job transfers, having children or otherwise, Pappas explained.
