Simply Homes, Inc.

Existing home sales fell for the third consecutive month in May, declining by 0.7%, as rising mortgage rates and record-high prices still deter prospective homebuyers.

Despite the slowdown, home prices have risen for the 11th consecutive month, reaching an all-time high, with the median sales price increasing by 5.8% compared to the previous year, reflecting a 51% rise over the past five years.

Contributing factors include elevated mortgage rates and the "lock-in" effect, where homeowners with low fixed-rate mortgages below 3% or 4% hesitate to sell. Additionally, the tight supply of homes for sale has been a constraint, although inventory is gradually increasing.

Read more here: https://hubs.la/Q02D0tF-0.

The housing market crisis reveals a flaw in the Federal Reserve's strategy to lower inflation, as the rate hikes implemented have slowed overall prices but are also keeping inflation sticky due to how homeownership costs are factored into key metrics.

Experts argue that the current methodology used to estimate the cost of homeownership is flawed, leading to an overestimation of implicit costs for homeowners. Additionally, the aggressive hiking has worsened the housing supply shortage, driving up costs for buying and renting.

Read more here: https://hubs.la/Q02B7NZh0

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U.S. housing market needs 1.5 million more homes, Freddie Mac finds

U.S. housing market needs 1.5 million more homes, Freddie Mac finds Freddie Mac: To address a housing shortage, the U.S. housing market needs '1.5 million vacant for-sale and for-rent homes.'

The housing market continues to worsen for buyers as elevated borrowing costs push up monthly outlays, making it more challenging for first-time homebuyers. Compared to last year, the cost of financing 80% of a home has increased by over 7%. To afford a home, households now need to earn approximately $120,000 a year, $6,400 more than before.

Read more here: https://hubs.la/Q02zRSG00