Welcome to today’s Real Estate news roundup! In the housing market, experts believe that a crash is unlikely despite rising property prices and high mortgage rates. Median existing-home prices have been consistently increasing, and the S&P CoreLogic Case-Shiller home price index has reached new all-time highs. While some markets may experience minor declines, economists agree that a significant drop in prices is highly improbable. Factors such as limited housing supply, strong demand, homeowners’ solid financial positions, and cautious construction by builders contribute to the stability of the market. In another development, a recent California Supreme Court ruling has dealt a blow to the misuse of the California Environmental Quality Act (CEQA) in housing fights. The ruling overturns a decision that considered noise from student occupants as an environmental impact requiring mitigation. Although it is not a comprehensive overhaul, this ruling marks a significant step towards reforming CEQA. Additionally, a report by ATTOM highlights the higher risk of a housing market slowdown in California, New Jersey, and Illinois. The analysis examines factors such as home affordability, underwater mortgages, foreclosures, and unemployment rates. While no immediate decline is predicted, the report emphasizes the varying levels of vulnerability across different housing markets. Read on to explore these stories further!
Is The Housing Market Going To Crash? | Bankrate
Despite rising property prices and high mortgage rates, experts believe that a housing market crash is unlikely. Median existing-home prices have been increasing for 10 consecutive months, and the S&P CoreLogic Case-Shiller home price index reached its sixth all-time high in 12 months. The lack of housing supply and strong demand contribute to the continuous rise in prices. While some markets may experience small declines, economists agree that a significant price drop is highly unlikely. Homeowners’ strong personal balance sheets and builders’ cautious construction pace also contribute to the stability of the housing market. Although affordability is a concern, the consensus is that the current boom will not end in a bust.
CA court deals blow to environmental law used in housing fights | Opinion
A recent state Supreme Court ruling on a controversial housing project in Berkeley may have significant implications for reforming the California Environmental Quality Act (CEQA). The ruling overturned an appellate court decision that considered noise from student occupants as an environmental impact that needed mitigation. This decision could weaken the long-standing notion that CEQA takes precedence over other regulatory laws, potentially limiting its misuse in housing fights. While it’s not a comprehensive overhaul of CEQA, the ruling marks a significant blow to its misuse.
HIGHER RISK OF HOUSING MARKET SLOWDOWN CONTINUES IN CALIFORNIA, NEW JERSEY AND ILLINOIS
According to a Special Housing Risk Report by ATTOM, California, New Jersey, and Illinois continue to have the highest concentrations of housing markets vulnerable to declines. The report analyzed home affordability, underwater mortgages, foreclosures, and unemployment in the first quarter of 2024. The most at-risk counties were found in the New York City and Chicago areas, as well as inland California. On the other hand, less-vulnerable markets were mainly spread throughout the South and Midwest regions. While this analysis does not suggest an imminent decline, it highlights the varying levels of vulnerability in different housing markets.