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Australian home prices have increased at their slowest rate in nearly two years, primarily due to declines in Sydney and Melbourne. Sydney experienced a 0.2% drop in November, marking its second consecutive monthly decline, while Melbourne's values have decreased in 10 of the last 12 months. Overall, major cities saw only a 0.1% rise in prices, the weakest growth since February 2023.
The average age of first-time homebuyers in the U.S. has reached an all-time high of 38, reflecting a decline in their market share from 32% to 24%. High rent prices, a significant housing shortage of 4 million homes, and increased competition against wealthier buyers are making homeownership increasingly difficult for younger adults. As a result, many renters remain cost burdened, spending over 30% of their income on housing, which hampers their ability to save for a home or pay down existing debt.
Sydney home prices experienced a 0.1% decline in October, marking the first drop in nearly two years, as affordability concerns deterred buyers. Despite this, the median price remains close to a record A$1.19 million ($823,780). In contrast, Perth saw a 1.4% increase, while Melbourne continued to decline, with major cities overall rising just 0.2%.
Pending home sales surged 7.4% in September, the highest since March, driven by lower mortgage rates in late summer and increased inventory. However, with rates now exceeding 7%, affordability is strained, and experts predict this uptick may be short-lived, impacting 2024 sales.
The U.S. housing market faces a significant shortage of 4 million homes, impacting affordability and contributing to rising prices, according to the Property Brothers. Despite a slight decrease in median home prices, they warn that without addressing this shortage, future generations may struggle to buy homes. Home equity remains strong, with homeowners holding over $17.6 trillion in net equity, suggesting that long-term investment in real estate can still be beneficial.
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