Marketplace All-in-One Housing is in a slump
May 23, 2025
Existing home sales have plummeted to 4 million amid rising prices and high mortgage rates, with economic uncertainty complicating the market. Builders are hesitant to restart new projects, causing inventory issues and threatening price declines. After recent wildfires, vulnerable homeowners face predatory investors, prompting proposed legislation for protection. Innovative financial models aim to empower local nonprofits for affordable housing, while a non-profit explores strategic management of post-disaster properties, enhancing community stabilization.
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Housing Affordability Crisis
- High home prices and mortgage rates create a severe affordability challenge for potential buyers.
- Wage growth has not kept up with housing costs over the past five years, deepening the crisis.
Builders Hesitate, Inventory Improves
- Builders hesitate to start new construction due to high borrowing and material costs.
- However, the inventory of existing homes is slowly improving, increasing by 20% year over year.
Home Prices Expected to Drop
- Increasing home inventory should apply downward pressure on prices.
- Zillow forecasts a nearly 1% decline in home prices over the next year, especially in major markets.