Builders Have No Choice But To Meet This Demand By Bringing Down Their Prices
A report from the Tampa Bay Times in Florida. "Nearly a thousand sales analyzed by the Times involved a home that sustained storm damage, according to a review of construction permits, substantial damage letters issued by local governments and code enforcement records. But since municipalities don’t uniformly track storm-damaged properties, the tally could be higher. By December, listings jumped by about 26% compared to the previous year. Lysette Ketterer, a real estate agent with Century 21 who specializes in waterfront properties, said she fielded calls from investors after the storms. She turns them away, advising her sellers not to take a low-ball offer. 'Initially, you have that scare tactic,' she said. 'People act on emotion. … Some people sold for a really low price up front.' In the areas that flooded the most, prices swiftly dropped after Hurricane Helene. In August 2024, excluding gift sales and transfers among family members, homes in surge areas went for a median price of $754,000. By February, the median price had slipped to $445,000."
WXYZ in Michigan. "Condo owners at a Southfield residential complex are planning legal action against their homeowner’s association over what they feel are oppressive increases in monthly fees. The Cumberland Condominium HOA assessments ballooned 63% last year, and residents are still reeling from the financial impact. Some residents are now paying upward of $645 a month in HOA fees. The steep increase has resulted in liens on some properties for those unable to keep up with payments, while others, particularly retirees on fixed incomes, face difficult financial choices. 'Some people have had to sell their condos, some people may have lost their condos. Some people have to choose between medications and actually groceries,' Veronica Cliett said."
The World Property Journal. "Just over 57,000 pending home sales were scrapped last month, representing 14.9% of homes that went under contract. With a surplus of sellers and limited demand, the U.S. housing market has firmly tilted into buyer's market territory. That leverage is giving prospective homeowners more room to negotiate -- or walk away entirely. 'Buyers are being more selective and more strategic,' said Crystal Zschirnt, a Redfin Premier agent in Dallas. 'If a better home pops up or an inspection reveals costly repairs, they're out. Some are also sitting tight, betting that prices or mortgage rates will fall further.' Sellers, meanwhile, are becoming increasingly flexible -- a notable reversal from the hypercompetitive pandemic-era market. 'Sellers today are doing whatever they can to keep deals alive,' said Van Welborn, a Redfin Premier agent in Phoenix. 'I had one luxury buyer uncover a septic issue and negotiate a $1 million price reduction.'"
From Barron's. "Home builders D.R. Horton and PulteGroup stocks rose after they both reported quarterly earnings on Tuesday that were way ahead of expectations. While the numbers beat Wall Street’s estimates, the national housing market looks crummy for sellers of all kinds. Zillow on Monday said that 26.6% listings saw a price cut in June, the largest share for that month since at least 2018. The highest share of home builders since at least 2022—38%—cut prices in July, according to the National Association of Home Builders. 'Builders often, as the last resort, cut prices,' says Robert Dietz, the chief economist of the home builders association. 'The fact that that [statistic] is near 40%, when a year ago, it was near 25%, is a signal that the housing market is softening.'"
"The share of these buyers purchasing from builders has increased over the past several years, Evercore analyst Stephen Kim wrote in a note earlier this month. In 2024, first-timers represented 40% of builder sales, down from the year prior but well above the 32% share before the pandemic, according to the National Association of Home Builders. 'This isn’t good news,' Kim said. In a resale market with a dearth of available entry-level homes, 'builders have no choice but to meet this demand by bringing down their [average selling prices] and margins,' he writes."
From Caliber on California. "As of July 7, over 800 wildfire-impacted homeowners had submitted applications for permits, according to data cited in a Wired article. Fewer than 200 have been approved. On average, it takes about 55 days for the city to approve a wildfire rebuild permit; the larger Los Angeles County takes even longer. Six months after the flames died out—having damaged or destroyed more than 16,000 structures, including over 9,500 single-family homes, 1,200 duplexes, and 600 apartment units—it’s evident that suspending regulations alone isn’t solving the problem. 'From the clients that I’ve spoken to, they’ve had to argue with their insurance company to get full replacement value or reasonable compensation, and that’s where they’re getting stuck,' said David Hertz, an architect based in Santa Monica."
From Silicon Valley. "An estimated 1,453 hotel rooms were under construction in the Bay Area during the first half of 2025, which represented a plunge of 46.7% from the 2,725 hotel rooms that were being built in the first half of 2024, the report shows. The region's lodging development nosedive was worse than the construction decline in California overall and in Southern California, the Atlas Hospitality report showed. Santa Clara County: 72 hotel rooms under construction, an 89.5% drop from the 684 rooms being built during the similar period the year before. Contra Costa County, Marin County and Solano County had zero hotel rooms under construction. Widening woes have engulfed the Bay Area lodging sector. The 500-room Oakland Marriott City Center in downtown Oakland was seized through a foreclosure on July 8 that placed a $70.2 million value on a lodging tower that in 2017 was bought for $143 million."
Real Estate Magazine in Canada. "Beyond Toronto, housing markets across Southern Ontario are experiencing some of the steepest price declines in the country. Areas like Hamilton-Burlington, Niagara, and Kitchener-Waterloo are feeling the brunt of a market downturn driven by fears over tariffs. 'Hamilton is the poster child for the impact of steel tariffs,' said Benjy Katchen, CEO of real estate platform Wahi. 'We’re seeing the same sentiment-driven slowdown across much of Southern Ontario.' With new tariff threats potentially arriving by Aug. 1, the housing market remains stuck in limbo. In Toronto, it’s a condo-specific issue, tariffs are affecting national confidence a bit, but Toronto is mainly about condos. Detached and semi-detached markets in the GTA and Greater Vancouver are holding up relatively well. But condos—there’s a real overhang right now.'"
"That overhang is driven by an influx of inventory. A flood of units has entered the market at the same time that demand is weakening, due in part to high financing costs and a slight dip in immigration. Adding to the pressure: many of these condos were purchased by investors now grappling with negative cash flow. 'What we’re seeing right now is that the relatively most unaffordable or expensive areas of the country are experiencing the largest price declines,' said. That trend is particularly clear in Ontario’s Greater Toronto Area (GTA) and across the Golden Horseshoe, mirroring similar weakness in British Columbia’s Lower Mainland. Sales activity and pricing have both taken a hit in recent months, but CREA’s data points to especially sharp declines in parts of Southwestern Ontario. 'Windsor is currently experiencing the lowest sales activity in about 12 years,' Chris Jokel, Senior Data Engineer at CREA said. 'At the same time, it’s facing extremely high new listings and overall inventory.'"
From The Standard. "The average price tag on a home coming to market fell by more than £4,500 this month, the biggest July price drop recorded in at least two decades, according to a property website. Across Britain, the average asking price in July is £373,709, marking a £4,531 or 1.2 per cent decrease month-on-month, Rightmove said. While there is often a seasonal dip in prices in July, this is the largest monthly price drop at this time of year recorded by Rightmove over more than 20 years of data, the website said. London, and particularly inner London, has been a driver of asking price falls among new sellers, Rightmove said. Aneisha Beveridge, head of research at Hamptons, said: 'The rental market has softened more quickly than we anticipated towards the end of last year. What initially appeared to be a London-centric slowdown has now spread across the country, with rents declining in multiple regions and growth easing elsewhere.'"
"Colleen Babcock, a property expert at Rightmove, said: 'We’re seeing an interesting dynamic between pricing and activity levels right now. The decade-high level of buyer choice means that discerning buyers can quickly spot when a home looks overpriced compared to the many others that may be available in their area. It appears that more new sellers are conscious of this and are responding to this high-supply market with stand-out pricing to entice buyers and get their home sold.'"
From ETV Bharat. "Kashmir's real estate sector is reeling from one of its worst downturns in years. Unsold properties are piling up, and prices have fallen to record lows. Realtors and developers report that demand has collapsed amid a broader economic slowdown and rising investor caution. 'Over the last three years, the market has seen a major slump. Right now, most buyers are only looking at properties priced between Rs 40 to 60 lakhs,' said Parvez Wani of Kashmir Avenue Realty. 'High-end properties worth over Rs 1 crore simply aren't getting any takers.' The high-end segment, which once attracted wealthy locals and buyers from outside the Valley, has seen almost no movement."
"'We are now forced to list properties worth crores in lakhs,' said Mohammad Shafi Dar, a veteran property agent based in Srinagar. 'A three-storey house with six or seven rooms, a hall, a garden, and parking for two cars is now being offered for a few lakhs. Just a couple of years ago, that would have sold for crores. Still, there are no takers.' Dar said he has personally suffered heavy losses in the current market. 'Last year, I bought a house for Rs 2 crore using my life’s savings. I had planned to sell it this year for a modest gain. Now, I'm willing to let it go at a 30 percent loss, but I still can't find a buyer,' he said. 'I am not alone. This has become the new normal for many of us.'"