Daryl Fairweather on long-term trends affecting housing
Apr 2, 2024
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Daryl Fairweather, Chief economist at Redfin, discusses long-term housing trends including home prices, climate risks, demographics. Topics include impact on Boston and Florida markets, climate change effects, economic factors, real estate negotiation, buyer behavior changes.
Limited supply drives high home prices despite mortgage rates.
Climate risks impact real estate market preferences and affordability.
Deep dives
Housing Market Trends: Home Prices and Limited Supply
Despite high mortgage rates, home prices continue to rise due to limited supply in the housing market. Owners with record-low mortgage rates are reluctant to sell, leading to a shortage of homes for sale. New construction attempts to bridge the gap, but it is insufficient to meet the demand, especially in areas like Boston, highlighting the need for more political will and changes in zoning laws.
Home Affordability and Market Dynamics
High home prices and increased down payment requirements are challenging high earners who do not have significant cash reserves. Cash buyers are finding more success in the current market due to avoiding higher interest rates. Many buyers, especially those in the middle-income bracket, find it difficult to afford homes with increasing prices and rates, leading to delays in purchasing decisions.
Climate Risk and Housing Market Trends
Florida's real estate market is experiencing challenges due to rising insurance and maintenance costs linked to increased climate risks. Coastal areas face higher vulnerability, while inland regions like Orlando offer more affordability and stability. Climate risks vary across the US, with regions like California facing wildfires and coastal areas dealing with flood risks. The impact of climate change on housing preferences and affordability is expected to influence future housing market trends.
On today’s episode, Editor in Chief Sarah Wheeler talks with Daryl Fairweather, chief economist at Redfin, about long-term trends in housing, including home prices, climate risk, demographics and more.
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