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New York Post
5 hours ago
- Business
- New York Post
The year's busiest homebuying season just hit its lowest point in 13 years
This year's spring homebuying season — typically the hottest stretch on the calendar — barely got off the ground, logging the weakest performance since 2012. Pending home sales from April through June hit a 13-year low, according to Redfin, as high borrowing costs and lingering affordability issues pushed would-be buyers to the sidelines. Even in a season that's usually buoyed by pent-up demand, agents reported sluggish traffic and tough sells. 5 The US housing market just notched its worst spring selling season since 2012, with nationwide pending home sales from April through June hitting a 13-year low, according to Redfin. Hernan Schmidt – In Atlanta, longtime agent Glennda Baker is sitting on 21 listings and slashing prices to get attention. 'People say price solves everything,' she told Bloomberg. 'But price doesn't solve uncertainty.' 5 Despite early signs of a rebound — flattening prices, a dip in mortgage rates and a temporary uptick in listings — the market was derailed by economic uncertainty and persistent affordability issues. Ryan Tishken – Earlier in the year, falling rates and cooling price growth had sparked cautious optimism that the market might rebound. 'We thought we hit rock bottom but we keep discovering there's more rock bottom to be had,' Chen Zhao, head of economics research at Redfin, told Bloomberg. While sellers aren't yet slashing prices en masse, many are pulling listings altogether, reducing inventory and stalling any chance of a buyer-friendly market reset. The result: Even with a buoyant stock market and slight gains in consumer confidence, economists say any delayed spring activity won't fully carry over into summer. 'The outlook for the housing market is dire,' Thomas Ryan of Capital Economics added. 'Affordability is at its worst since the 1980s. Nothing has changed on that front.' Regional disparities are also widening. In the Northeast and Midwest, severe inventory shortages are still pushing prices higher. But in Sun Belt states like Florida, Texas and Nevada, where homebuilding boomed in recent years, listings are stacking up and sales are sinking. 5 Buyer paralysis is widespread, and while some markets in the Northeast and Midwest are still seeing price gains due to tight supply, overheated Sun Belt metros like Las Vegas and parts of Florida are seeing a glut of listings and plunging sales. Getty Images 5 Analysts warn that, despite a strong stock market and a rebound in consumer confidence, a major summer turnaround is unlikely. Getty Images In Las Vegas, active listings jumped more than 38% year-over-year while sales dropped 15%. 'The fear of missing out has shifted from buyers to sellers,' Angela O'Hare, a local agent with Real Broker, told the outlet. 'Sellers who need to sell will make it happen. I had a listing at $950,000. I cut it down to $799,000 and had three offers.' Even resilient markets like Narragansett, Rhode Island, are feeling the chill. 'We're seeing a lot more price decreases throughout Rhode Island now,' Johnny Sheil, of Mott & Chace Sotheby's International Realty, said. 'Uncertainty scares some people.'
Business Times
3 days ago
- Business
- Business Times
US housing market posts worst spring selling season in 13 years
[BOSTON] The US housing market just logged its slowest spring season in more than a dozen years, leaving Glennda Baker, a veteran real estate agent in Atlanta, struggling to sell 21 listings. She's been slashing prices. But months of chatter about AI taking jobs and tariffs tanking the economy is feeding into buyer indecision. 'People say price solves everything,' Baker said. 'But price doesn't solve uncertainty.' Spring is traditionally the busiest season in real estate, not unlike Christmas for retailers. And while the most unaffordable housing market in decades has sidelined all but the most determined buyers, there were signs earlier this year that conditions were right for a rebound. By April, mortgage rates dipped, price growth flattened and the years-long inventory drought looked like it had finally broken. But that coincided with US President Donald Trump's 'Liberation Day' tariff bombshell, which sent shock waves through financial markets and pushed house hunters back into hiding. Fewer sales contracts were signed in the US from April to June than in any year since 2012, according to data from Redfin. That was back when the housing market was still finding its footing after the collapse that fuelled the financial crisis. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Before 2025, the previous two springs were also weak, pulled down by high rates and prices, but anxiety over the future of the economy has made things worse this time, said Chen Zhao, head of economics research at the brokerage. Prices, however, are unlikely to plunge because sellers are starting to pull listings off the market, limiting inventory, she said. 'We thought we hit rock bottom but we keep discovering there's more rock bottom to be had,' Zhao said. 'You have a lot of people being afraid of what's to come.' With consumer confidence ticking up and the stock market on a hot streak, the hope is that deals that normally might have happened in the spring will get pushed into summer. But there's likely to be only a small bump, according to Thomas Ryan, an economist at Capital Economics. The rental market is gaining strength because many would-be buyers still cannot afford to purchase, he said. And as borrowing costs remain higher for longer, people have stopped assuming they can buy now and be able to refinance at a later date, according to Ryan. 'The outlook for the housing market is dire,' he said. 'Affordability is at its worst since the 1980s. Nothing has changed on that front.' Location matters One silver lining is that buyers have gained some negotiating power as listings climbed across much of the country. But as always in real estate, what matters most is geography. Prices continue to rise fast in the Northeast and Midwest, where inventory shortages are severe. Yet in Sun Belt markets such as Florida and Texas, where homebuilders were most active in recent years, the market is sinking. In Las Vegas, active listings shot up more than 38 per cent from a year earlier while sales plunged 15 per cent, according to Redfin data for the four weeks to Jul 20. The fear of missing out has shifted from buyers to sellers, said Angela O'Hare, an agent with Real Broker in the Las Vegas area. It does not help that sellers have to compete with homebuilders offering to subsidise mortgage rates and help cover closing costs, she said. 'Sellers who need to sell will make it happen,' O'Hare said. 'I had a listing at US$950,000. I cut it down to US$799,000 and had three offers.' Even some of the country's hottest markets have lost some steam. In Narragansett, a picturesque beach town in Rhode Island south of Providence, homes that would have gotten a dozen offers a year ago now get three, if they are priced right, said Johnny Sheil, an agent with Mott & Chace Sotheby's International Realty. 'We are seeing a lot more price decreases throughout Rhode Island now,' Sheil said. 'Uncertainty scares some people.' BLOOMBERG
Bloomberg
3 days ago
- Business
- Bloomberg
US Housing Market Posts Worst Spring Selling Season in 13 Years
The US housing market just logged its slowest spring season in more than a dozen years, leaving Glennda Baker, a veteran real estate agent in Atlanta, struggling to sell 21 listings. She's been slashing prices. But months of chatter about AI taking jobs and tariffs tanking the economy is feeding into buyer indecision.
