Latest news with #homeprices
Yahoo
7 hours ago
- Business
- Yahoo
The tide is turning in the housing market as top metro areas see home prices fall ahead of a broader decline later this year
Home-sale prices in 11 of the 50 biggest U.S. metro areas are already falling, according to data from Redfin, which sees the nationwide median sale price declining 1% on an annual basis in the fourth quarter of this year. That's as listings grow and mortgage rates remain high, while sellers outnumber buyers by record amounts. A key tipping point in the housing market is coming into view as momentum shifts more firmly in favor of buyers over sellers. That could help revive a relatively anemic home-shopping season, which recently saw a steep decline in pending sales, meaning fewer purchase contracts were signed. 'But the tide is starting to turn for homebuyers,' Redfin said in an update on Thursday. While the median U.S. home-sale price was up 1.9% year over year in the four weeks that ended May 25, prices in 11 of the 50 most-populous U.S. metro areas are falling, according to Redfin data. They're led by Oakland, Calif. (-4.9%); Dallas (-4.5%); Jacksonville, Fla. (-3%); Austin, Texas (-2.5%); and Seattle (-1.4%). That comes ahead of what's expected to be a broader trend later this year. Redfin sees the median U.S. sale price going flat in the third quarter on an annual basis, then falling 1% year over year by the fourth quarter—even with mortgage rates seen hovering around 7%. It would mark a sharp reversal from earlier this year and recent history. In the first quarter, prices rose 3%, and second-quarter prices are expected to be up 2%. Meanwhile, prices have been rising since 2012, except for a blip in 2023, amid a prolonged seller's market. The reason for the U-turn is simple: there is way more supply than demand right now. Last month, there were about 500,000 more people selling homes than there were people trying to buy them, marking the biggest such gap since Redfin started collecting the data in 2013. And when those home sellers list their properties, they're staying on the market longer, forcing some to lower their asking prices. 'Sellers are realizing we're in a new market, which is making them flexible,' Venus Martinez, a Redfin agent in Los Angeles, said in the report. 'A lot of sellers, especially those who may have bought at the top of the market and need to sell, are willing to accept less money for their homes, give concessions to buyers, and even negotiate commissions. Buyers are more likely to be able to negotiate if a home has been on the market for more than a few weeks, or if it has fallen out of contract.' While mortgage rates will likely remain high, Redfin noted that wages will continue rising, meaning that home affordability should still improve in the second half of the year. Redfin's forecast follows a similar one from Zillow in April, when it predicted home values will fall 1.9% this year after previously anticipating a 0.6% increase. 'The combination of rising available listings and elevated mortgage rates is signaling potential price drops by year's end,' Zillow researchers wrote. 'With increased supply, buyers are gaining more options and time to decide, while sellers are cutting prices at record levels to attract bids.' Of course, if buyers start to flood the market, then the pricing landscape will change with it. On the other hand, a prolonged slump in activity is also typically bad news for the overall economy. Analysts at Citi Research warned in a note last week that residential investment, a leading indicator for a recession, is set to contract this quarter after growing weakly in the first quarter as high mortgage rates take a toll. 'Residential fixed investment is the most interest rate sensitive sector in the economy and is now signaling that mortgage rates around 7% are too high to sustain an expansion,' Citi said. This story was originally featured on Sign in to access your portfolio
News.com.au
9 hours ago
- Business
- News.com.au
Interest rate cut has immediate impact on Geelong home prices
Geelong's property market is just a chip-shot away from making up the ground lost in home prices over the past 12 months, new data shows. The latest PropTrack Home Price Index results reveals the median home price in Geelong ended May just .67 per cent shy of the value recorded at the same time last year. It marks a quick turnaround as the Reserve Bank locked in the second interest-rate cut in 2025 a fortnight after the government banked a stunning federal election win. Geelong's median house price reached $893,000 in May, according to the PropTrack figures, just shy of the figure recorded in 2024. The value of a typical unit is up on all measures, reaching $612,000 by the end of May. PropTrack senior economist Eleanor Creagh said Geelong was not far off returning to positive territory on annual terms. 'It's a bit of a chip shot, and it's likely that prices are going to continue lifting throughout the remainder of 2025,' Ms Creagh said. 'We're seeing that price momentum has increased and broadened with interest rates falling. 'And we know that lower interest rates have lifted borrowing capacities and boosted buyer demand, and of course, with further price increases and rate cuts expected, prospective buyers are moving off the sidelines and accelerating their purchasing decisions. 'And as a result, we're seeing that growth momentum has increased, underpinned by improving buyer sentiment and confidence.' Ms Creagh said it appears that interest rates moving lower has buoyed buyer confidence. 'I think people are anticipating that interest rates are going to continue to move lower already and that prices are going to continue to rise.' The fast turnaround comes regional prices outpaced the combined capitals. Regional home prices are now 65 per cent higher than their levels five years ago. The turnaround in buyer sentiment after an interest-rate cut comes amid continued strong population growth on the back of nation-leading internal migration figures. More than 10 per cent of people moving to regional Australia have settled in Geelong, the Regional Australia Institute data from the Regional Movers Index revealed. McGrath, Geelong agent David Cortous said the changing sentiment was already visible on the streets, with more people attending inspections, watching auctions and in some cases competing for properties. 'The Geelong market has been flat on price to two years now,' Mr Cortous said. 'We're starting to see that multiple buyers are back on properties now and we're selling through stock that's been sitting there. That's an indicator that the needle is moving.'
Bloomberg
15 hours ago
- Business
- Bloomberg
Australian House Prices Continue to Climb After RBA Rate Cut
Australian home prices climbed for a fourth straight month, driven by a second interest rate cut by the country's central bank and expectations more will follow later this year. The Home Value Index advanced 0.5% in May, with every major city recording a rise, property consultancy Cotality, formerly CoreLogic Inc, said in a statement on Monday. Darwin was the top gainer, climbing 1.6%, followed by Perth which rose 0.7%. The bellwether market of Sydney was up 0.5% and Melbourne increased 0.4%.
CNA
a day ago
- Business
- CNA
New home prices in China rise on policy hope, private survey says
BEIJING: The average price of new homes across 100 cities in China climbed 0.30 per cent in May, suggesting supportive policies could be yielding some effect, according to a private survey released by property researcher China Index Academy on Sunday (Jun 1). The increase was almost double the last month's rate of increase at 0.14 per cent. New home prices have been under pressure even as Chinese policymakers plough in efforts since last year to stabilise the sector with supportive measures, including most recently lowering lending rates to spur real estate purchases. "Overall, the current macro policy support for the property market has been increasing," the real estate research institute said in a report posted on its WeChat account. New home prices in first- and second-tier cities were surveyed rising from a month ago, with Shanghai topping the list of 100 cities. On a year-on-year basis, the average prices for new homes rose faster at 2.56 per cent, versus 2.50 per cent in April. China's statistics bureau will release the official data for home prices on Jun 16. The market continued to see a persistently high volume of listings for second-hand residential units, keeping prices lower in that segment, it said. Prices of second-hand properties fell 0.71 per cent from a month ago, and 7.24 per cent year-on-year. That compared with April's declines of 0.69 per cent and 7.23 per cent, respectively. The property market, accounting for roughly a quarter of economic activity at its peak, is where some 70 per cent of China's household wealth is invested.
Malay Mail
a day ago
- Business
- Malay Mail
New home prices climb across China's big cities, boosted by stimulus, survey shows
BEIJING, June 1 — The average price of new homes across 100 cities in China climbed 0.30 per cent in May, suggesting supportive policies could be yielding some effect, according to a private survey released by property researcher China Index Academy today. The increase was almost double the last month's rate of increase at 0.14 per cent. New home prices have been under pressure even as Chinese policymakers plough in efforts since last year to stabilise the sector with supportive measures, including most recently lowering lending rates to spur real estate purchases. 'Overall, the current macro policy support for the property market has been increasing,' the real estate research institute said in a report posted on its WeChat account. New home prices in first- and second-tier cities were surveyed rising from a month ago, with Shanghai topping the list of 100 cities. On a year-on-year basis, the average prices for new homes rose faster at 2.56 per cent, versus 2.50 per cent in April. China's statistics bureau will release the official data for home prices on June 16. The market continued to see a persistently high volume of listings for second-hand residential units, keeping prices lower in that segment, it said. Prices of second-hand properties fell 0.71 per cent from a month ago, and 7.24 per cent year-on-year. That compared with April's declines of 0.69 per cent and 7.23 per cent, respectively. The property market, accounting for roughly a quarter of economic activity at its peak, is where some 70 per cent of China's household wealth is invested. Any signs of relief could help cushion China's economy from the stresses of a yet-unresolved trade war with the United States. — Reuters
