Welcome to today’s roundup of news in the Real Estate category. In Northern California, Century Communities, Inc. has joined two popular planned communities, offering prospective homebuyers exciting opportunities. Meanwhile, California is facing a 1.7% decline in housing inventory, posing challenges for buyers due to high mortgage rates and a shortage of homes. However, experts remain optimistic about the housing market’s future, predicting improvements as inventories increase and mortgage rates cool off. Additionally, Bechtel has secured a $490 million contract for a significant rail extension project in Santa Clara County, while Southern California continues to experience rising home prices, reaching all-time highs. Dive deeper into these stories to stay informed about the latest developments in the housing market.
Century Communities Joins Two Popular Planned Communities in Northern California
Century Communities, Inc.—one of the nation’s largest homebuilders, an industry leader in online home sales, and the highest-ranked homebuilder on Newsweek’s list of America’s Most Trustworthy Companies 2024—is excited to announce it’s now selling at two popular Northern California planned communities: Twelve Bridges (Lincoln, CA) and SOMO Village (Rohnert Park, CA).
California Sees a 1.7% Decline in Housing Inventory
The persistent shortage of housing inventory, stemming from a combination of long- and short-term factors, continues to challenge prospective homebuyers in the U.S. High mortgage rates have deterred many sellers from listing their properties, while new residential construction activity has slowed. Institutional investors have acquired a larger share of homes sold, further contributing to the shortage.
However, the current housing shortage, estimated to be between four million and seven million homes, can be traced back to the past decade when the United States constructed fewer new homes than in any other decade since the 1960s. This insufficient supply fails to meet the demands of population growth, immigration, urbanization, and retirees opting to age in place.
While the inventory deficit has eased slightly, the situation remains challenging for buyers. Regional disparities exist, with some states experiencing lower levels of supply compared to others. Florida, Hawaii, and Montana present more favorable conditions for buyers, while states in the Midwest and Northeast face lower levels of available housing.
Nationally, the number of homes for sale has increased by 4.0% between the first quarters of 2023 and 2024. However, this figure varies significantly across states, highlighting the unique nature of local markets and the need for individualized policy approaches to address housing issues.
Housing Market Predictions For 2024: When Will Home Prices Be Affordable Again? – Forbes Advisor
Despite challenges such as high mortgage rates, out-of-reach home prices, and sluggish sales transactions, experts insist that the housing market will improve. However, several conditions need to unfold for a housing recovery to occur, including an increase in inventories of homes for sale and a cooling off of mortgage rates. While some positive signs, such as more resale inventory entering the market and declining median prices for new homes, have emerged, it may take time for the market to reach more affordable levels.
Is The Housing Market Going To Crash? | Bankrate
Despite high mortgage rates, the U.S. housing market continues to see record-breaking home prices due to a lack of housing supply and strong demand. Experts predict that while there may be a modest correction, a significant housing market crash is unlikely. Factors such as homeowners’ strong personal balance sheets, low mortgage rates for existing homeowners, and cautious construction by builders contribute to the stability of the market. Although affordability remains a concern, the consensus is that the current housing boom will not end in a bust.
Bechtel wins $490M contract for California rail extension | Construction Dive
Bechtel has been awarded a $490 million contract for the construction of a new rail extension in Santa Clara County, California. This project, estimated to cost $12.8 billion, will be the largest single public infrastructure project ever constructed in the county. Bechtel has previous experience working on the original BART system and Phase I of BART’s Silicon Valley Line. The contractor estimates that the transit system will carry nearly 55,000 passengers each weekday by 2040. Despite a drop in spending in the transit vertical, builders remain optimistic about the future of the sector.
Southern California home prices keep rising; up nearly 8% in June to all-time highs
In June, Southern California home prices rose nearly 8% from the previous year, reaching all-time highs for the fourth consecutive month. The average home price in the region now stands at $876,280, with increases seen across all counties. The rising prices pose challenges for prospective homebuyers, especially in an expensive region with high interest rates. While there has been a slight increase in the number of homes for sale, economists believe that the shortage of homes and homeowners holding onto low-rate mortgages will continue to drive prices up. However, experts anticipate a potential slowdown in price growth in the future.