News – Page 2 – Habitat Abstract

Harvard Report Says Half of U.S. Renters are “Cost-Burdened”

February 6, 2024
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Affordability remains a major issue throughout the real estate sector, but a recent report from the Joint Center for Housing Studies of Harvard University emphasizes the issue. According to the report, approximately one half of all renters across the United States are considered “cost-burdened,” meaning they are spending more on rent than they can afford. It is a sign of the need to bring housing costs under control, as more and more people struggle simply to afford basic expenses.

Hong Kong Court Orders Evergrande to Liquidate

January 31, 2024
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A Hong Kong court ordered real estate giant Evergrande to liquidate its assets, ending a long legal battle over the fate of what has been described as “the world’s most indebted property developer.” The company filed for bankruptcy in the United States in 2023 after it was found that it was unable to meet its obligations, resulting in it defaulting on its debts. Though Evergrande primarily operated in China, the effect of its liquidation in bankruptcy is likely to reverberate throughout the global economy, and in particular in the real estate sector.

10% Increase in Mortgage Demand in Second Week of January

January 24, 2024
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The second week of January saw a substantial increase in mortgage demand, with the total number of applications for mortgages increasing by approximately 10%. This rise in mortgage demand affected both refinancing and new mortgages, which both went up during that same time period. This is largely attributed to declining interest rates, helping to bring the price of mortgages into more affordable levels for potential buyers.

A Mirrored Set of Problems in Commercial, Residential Real Estate

January 23, 2024
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Both the commercial and residential real estate sectors are facing serious troubles, albeit for almost entirely opposite reasons. The residential real estate market has been significantly hampered due to high housing prices and a lack of available inventory, while commercial real estate is facing a potential crisis from a glut of available properties that no one seems to want to buy. In both cases, however, high interest rates have proved to be an aggravating factor, but fortunately that may be getting better in the near future.

Sharp Decline in Mortgage Interest Rate May Spur Surge in Buying

January 23, 2024
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A significant decline in mortgage interest rates may be spurring newfound interest from prospective homebuyers, according to a consumer survey by Fannie Mae. The survey shows that, for the first time in more than a decade, homeowners are expecting interest rates to decline rather than go up, indicating some optimism for the market. This, combined with an expected increase in the amount of available inventory, may lead more people to begin buying homes again.

Available Housing Inventory Reaches New Lows

January 23, 2024
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Real estate brokers and lenders have shown growing concern over the general lack of inventory on the market, with RE/MAX CEO Nick Bailey estimating that the US housing market is short between four and five million homes. This overall shortage of housing inventory has been an issue for some time, but the problem has only become more acute as mortgage interest has gone up. Without a significant change, prospective buyers may find themselves in a situation where there are simply not enough houses on the market to purchase.