Homebuying Demand Slowly Eases, Builder Confidence Sinks, and Other Appraisal News

California suburbs from a drone point of view.

Homebuying demand begins to ease up a bit, with 5% of home sellers dropping their price in recent weeks. Builder confidence sinks to a 13-month low. The FHFA proposes housing goals for the GSEs to boost minority homeownership. Appraisers are urged to pay attention to policy. Read on for more appraisal news and insights.

5% of home sellers dropped their price in recent weeks

According to this market update from Redfin News, “As demand eases and sellers adjust their price expectations, the housing market is slowly aligning to typical seasonal patterns.” The average share of homes with price drops each week has now passed 5%, its highest level since fall 2019. However, “home prices are still rising and homes are selling very quickly, just slightly slower than before.”

Redfin News also reported this week that the homebuyer bidding-war rate dropped to its lowest level since January, and the demand for vacation homes fell for the second consecutive month in July.

Builder confidence sinks to 13-month low

“Data from the latest NAHB/Wells Fargo Housing Market Index (HMI) has shown that continued rising construction costs and supply shortages, along with an upswing in home prices, pushed builder confidence to its lowest reading since July 2020, as builder sentiment in the market for newly-built, single-family homes fell five points to 75 in August,” according to this story from MReport.

Higher costs due to the price of materials have led to lower levels of home building and have slowed new home sales. However, NAHB Chief Economist Robert Dietz stated that, despite these limitations, “our expectation is that production bottlenecks should ease over the coming months and the market should return to more normal conditions.”

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FHFA charts goals to boost minority homeownership

According to this DS News story, “In a move to further create housing opportunities for all, the Federal Housing Finance Agency (FHFA) has proposed housing goals for Fannie Mae and Freddie Mac (the GSEs) for 2022 to 2024.” The goals are designed to promote fair access to affordable housing for low-income families, minority and rural communities, and other underserved populations.

This news comes on the heels of a recent Zillow analysis which forecasts that housing affordability issues will worsen by the end of the year. Read the press release from Zillow for more info.

Appraisers urged to pay attention to policy

In this Appraisal Buzz article, experienced appraiser Mark Buhler urges appraisers to stay updated on local, state, and federal policy as it relates to the appraisal profession. “Low mortgage rates have resulted in an appraisal volume that, for many of us, is unprecedented,” Buhler writes. “Understanding what drives interest rates should be of utmost importance to an appraiser that is doing predominately lending work.” Additionally, he notes that keeping up with policy in your state “could create an opportunity to expand your appraisal business.”

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