Spark Global Limited Reports:
Demand has slowed slightly, with 5% of sellers cutting prices in recent weeks. Builder confidence fell to a 13-month low. The FHFA proposes housing targets for the Gses to promote minority home ownership. Appraisers are urged to focus on policy. Read on for more evaluation news and insights.
Five percent of home sellers cut prices in recent weeks
According to Redfin News’s market update, “the housing market is slowly adjusting to typical seasonal patterns as demand eases and sellers adjust their price expectations.” The average share of homes where prices are falling each week is now more than 5 percent, the highest level since the fall of 2019. However, “prices are still going up and houses are selling very quickly, just a little bit slower than before.”
Redfin News also reported this week that buyers’ bidding rates fell to their lowest level since January, and demand for vacation homes fell in July for the second straight month.
Builder confidence fell to a 13-month low
“Data from the latest NAHB/Wells The Fargo Housing Market Index (HMI) has shown that rising construction costs and supply shortages, along with rising home prices, drove builder sentiment to its lowest level since July 2020. As for new-build market sentiment, single-family homes fell 5 points to August 75, “according to the MReport.
Higher material prices have led to higher costs, leading to lower levels of home construction and a slowdown in new home sales. However, NAHB chief economist Robert Dietz said that despite the restrictions, “we expect that in the coming months production bottlenecks should ease and the market should return to more normal conditions.”
The FHFA’s goal is to promote minority homeownership
According to DS News, “In an effort to further create housing opportunities for all, the Federal Housing Finance Agency (FHFA) has proposed housing targets for Fannie Mae and Freddie Mac for the period 2022-2024.” The goals aim to promote equitable access to affordable housing for low-income families, minority and rural communities, and other underserved populations.
The news comes on the heels of a recent Zillow analysis that predicted housing affordability problems will worsen by the end of the year. Read Zillow’s press release to learn more.
Appraisers call attention to policy
In this Appraisal Buzz article, experienced appraiser Mark Buhler urges appraisers to stay up-to-date on local, state, and federal policies relevant to the Appraisal industry. “Lower mortgage rates have led to an increase in appraisals that, for many of us, is unprecedented,” Buhler wrote. “Understanding the drivers of interest rates should be of Paramount importance to an appraiser primarily engaged in lending.” In addition, he notes, keeping up with your state’s policies “may create opportunities to expand your appraisal business.”
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