06/14/2025
🏘️ National Housing Market Trends
• Record surge in listings: April saw about 500,000 more sellers than buyers, the largest such imbalance since 2019. This growing inventory—paired with mortgage rates over 6.5% and elevated home prices—is cooling the market and giving buyers more negotiating power.
• Mortgage rates holding steady: The 30‑year fixed mortgage rate averaged around 6.84% for the week ending June 12—essentially flat week-over-week.
• Home price growth slowing: Fannie Mae forecasts +2.9% average price growth in 2025 and +2.8% in 2026. Zillow projects a 1.4% decline in national home values this year, with existing-home sales expected to tick up slightly.
• Rise of small investors: “Mom & pop” investors (those purchasing 10 or fewer homes) made up 59% of investor home purchases in 2024—the highest share on record, while big institutional buyers declined.
• Rental market heating up: A recent slowdown in apartment construction, combined with ongoing demand, is leading to rent increases. Zillow forecasts suggest single-family rents rising ~2.8% and multifamily rents ~1.6% this year.
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📍 Local Highlights — New York City Region
• Hudson Yards Phase II: Related Companies just cleared rezoning for the western portion—now planned to include 4,000 new housing units, of which 625 are income-restricted, plus a daycare, public school, and park.
• Office-to-residential transitions: Nearby, 25 Water Street is on track to become the nation’s largest office-to-residential conversion, adding ~1,300 units. Leasing began earlier this year, with some affordable units now available via lottery.
• Equity gap in ownership: A recent academic study shows substantial racial disparities in property ownership across NYC—white individuals are overrepresented as property owners compared to Black, Hispanic, and Asian communities.
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💡 Why It Matters
• Buyers are gaining leverage as inventory grows and price growth slows—making now a favorable time to negotiate.
• Stable yet elevated mortgage rates still challenge affordability, nudging more people toward renting.
• Urban markets like NYC are seeing meaningful policy-driven shifts: rezoning and conversions aim to boost housing stock and affordability—but longstanding equity issues remain.
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