Real Estate News – Page 8 – Habitat Abstract

Applications for Mortgages Falls 14% to New Low

October 7, 2022
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The number of people seeking new mortgages fell 14% in the first week of October, indicating the lowest number of mortgage applications since 1997. This extraordinary drop in the number of applications for new mortgages is spurred by a number of factors, including pressure from rising interest rates, as well as difficulties emerging from Hurricane Ian. While the market is expected to pick up somewhat as hurricane recovery goes forward, the market overall seems like it will continue to cool.

Rising Prices and Lowered Costs May Lead to “Housing Recession”

August 22, 2022
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A combination of detrimental economic factors has led home builders to say that the United States may be headed into a “housing recession.” This is due to a variety of issues, including rising building costs and lower prices, that have made it less profitable for builders to begin projects. This has led to some fears that the cooling housing market will limit the number of home sales, and may be a sign of broader economic difficulties on the horizon.

Rising Inventory Eases Pressure in Real Estate Market

June saw a massive increase in the availability of housing inventory, with the number of houses available for sale increasing 19% compared to the same time in 2021. This increase could help to alleviate a persistent shortage in the number of available houses, which has driven up prices and made competition for existing inventory fierce. It could also help to counter the effects of higher inflation and interest rates, which are driving the cost of real estate up.

Economists Project the Housing Market is Cooling

After a prolonged period of rising housing prices and high demand, economists are now projecting that the housing market is cooling off. Prices began to fall off in April, with as much as fifteen percent of sellers cutting their prices, according to Fortune. This means that, for the first time in years, prices and sales are expected to fall significantly, which could have a serious effect on the housing market.

Adjustable Rate Mortgage Demand Highest Since 2009

April 28, 2022
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The number of people applying for an adjustable rate mortgage has doubled in three months, according to the Mortgage Bankers Association. This massive increase in the number of people taking on adjustable rate mortgages has been attributed to increasing mortgage rates, which have made traditional fixed-rate mortgages more appealing. Some analysts fear this could be pointing to a cooling housing market, as interest rates rise and home sales continue to decline.

SCOTUS Rules Use of Land for Labor Activities is Physical Taking

April 26, 2022
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In a controversial new ruling, the Supreme Court of the United States has ruled that a nursery that was made to temporarily give up its land for labor activities suffered a per se physical taking. This ruling was considered surprising for a number of reasons, including the notion that it was considered a physical taking rather than a regulatory taking. This could substantially impact how some states tailor similar legislation in the future.