Real Estate

Trends and updates on property markets, including residential and commercial sectors.

Residential

Residential
US housing slump deepens as demand weakens
Sales of newly built homes in the United States fell sharply in January, dropping 17.6% from the previous month to a seasonally adjusted annual rate of 587,000 units, the lowest level since October 2022, according to data released by the U.S. Census Bureau. The decline, which was steeper than economists had anticipated, signals renewed weakness in the housing market after expectations late last year that activity would begin to stabilise. Sales were also down 11.3% compared with January 2025, with December figures revised lower. The figures, based on signed contracts rather than completed sales, reflect buyer activity during a period when borrowing costs were relatively lower. The average rate on a 30-year fixed mortgage ranged between 6.0 and 6.2% in January, according to Mortgage News Daily, but has since risen to about 6.36%, adding further pressure to affordability. Inventory levels increased as demand weakened. There were 476,000 new homes on the market in January, translating to a 9.7-month supply, up from eight months in December, Census Bureau data shows. A balanced market typically reflects about six months of supply, indicating a growing mismatch between supply and demand. Builders have responded
Residential
US pending home sales rise but could be pushed down again
Contracts to purchase previously owned homes in the United States have grown unexpectedly in February amid a decline in mortgage rates, but the war in the Middle East could prevent further gains. Pending sales in February rose 1.8% from the previous month and 0.8% year-over-year, according to the National Association of Realtors Pending Home Sales Report. Economists polled by Reuters predicted that contracts would fall by 0.5% month-over-month. This comes as mortgage rates eased at the start of the year after President Donald Trump ordered government-backed mortgage firms Fannie Mae and Freddie Mac to expand purchases of mortgage-backed securities. However, mortgage rates have begun to climb in recent weeks due to the U.S.-Israel war with Iran, boosting oil prices and U.S. Treasury yields. Mortgage rates track the benchmark 10-year Treasury yield. “The slight gain in pending contracts appears to be driven by improved affordability conditions,” NAR chief economist Lawrence Yun said. “However, those conditions could reverse if higher oil prices lead to an uptick in mortgage rates.” Home sales rose in the Midwest, South, and West but declined in the Northeast month-over-month. They rose in the south and west
Residential
US homebuilder sentiment up slightly in March: NAHB
United States homebuilder sentiment rose slightly in March, though affordability concerns persisted amid high construction costs and economic stress stemming from the U.S.’ war against Iran. Builder confidence in the market for single-family housing increased by one point to 38, per the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index. Reuters-polled economists had forecast the index would remain unchanged at 37. “Affordability for buyers and builders remains a top concern,” said NAHB Chairman Bill Owens. “Many buyers remain on the fence waiting for lower interest rates and due to economic uncertainty. Builders are facing elevated land, labor and construction costs and nearly two-thirds continue to offer sales incentives in a bid to firm up the market.” Uncertainty from the U.S.’ war against Iran will also be headwinds in the market in the months ahead, including economic stress prompted by surging oil prices, said NAHB chief economist Robert Dietz. The survey found that 37% of builders cut prices in March, a slight increase from 36% in February. The average price reduction was unchanged at 6%. March’s indices come amid an uptick in mortgage rates. While the 30-year fixed mortgage rat
Residential
US single-family housing starts drop in Jan
United States single-family housing starts fell in January despite an increase in overall housing construction, as winter weather and furniture tariffs weighed on building activity. Single-family starts dropped 2.8% to 935,000 during the month, per the U.S. Census Bureau. However, total privately-owned housing starts rose 7.2% to 1,487,000, supported by 29.1% growth among properties with at least five units. Building permits also dropped in January. “Privately-owned housing units authorised by building permits in January were at a seasonally adjusted annual rate of 1,376,000,” according to the Census Bureau. “This is 5.4 percent below the revised December rate of 1,455,000 and is 5.8 percent below the January 2025 rate of 1,460,000.” Permits for single-family units fell 0.9%, while permits for properties with more than 5 units were down 13.4%. The West posted the largest decline in building permits, dropping 15.7%. The Midwest was the only region to report an increase, at 9%. Single-family housing completions in January fell 1% to 970,000. This is despite 4.8% growth in total housing completions amid a 16.2% surge in properties with at least five units. The slump in single-family housing construction came amid
Residential
Aus dwelling approvals fall in Jan due to apartments
Australia’s dwelling approvals dropped 7.2% in January as apartment and townhouse approvals plummeted, the Australian Bureau of Statistics (ABS) said today. A total of 14,564 dwellings were approved in January, with the decline falling far short of Westpac analysts’ expected 5% increase. Approvals also fell by 14.9% in December. “The drop in total dwellings approved was driven by a 24.5 per cent fall in private dwellings excluding houses,” said ABS head of construction statistics Daniel Rossi. “This is the second consecutive fall in private dwellings excluding houses, following a 30.7 per cent drop in December.” House approvals increased by 1.1% to 9,753. This was led by Western Australia, where approvals surged by 11.5%, while South Australia reported the largest decrease at 8.9%. Apartment approvals fell by almost half to 1,819, down 60.1% year-over-year. Townhouse approvals dropped 39.2% to 1,684, 11% lower than January 2025. The decline in apartment and townhouse approvals is partly due to seasonal factors as workers take holidays or annual leave, according to Rossi. The value of approved buildings was up 7.3% in January to A$17.71 billion, compared with an 11.4% drop in December. This was driven by a 19.1

Real Estate

Residential

US housing slump deepens as demand weakens

US pending home sales rise but could be pushed down again

US homebuilder sentiment up slightly in March: NAHB

US single-family housing starts drop in Jan

Aus dwelling approvals fall in Jan due to apartments

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