We’re in a buyer’s market

Welcome back! Today, we’re looking at why buyers are gaining power in the housing market, major cuts at HUD, and a surprising trend among first-time homebuyers.

Today’s newsletter is 792 words, a 2.5-minute read.

1. We’re in a buyer’s market

For the first time this decade, the U.S. housing market has shifted in favor of buyers, according to Redfin’s latest update. Here’s the data from February to back it up:

• Sales are slow: Pending sales fell 6.3% in January to the lowest mark since the early days of the pandemic in April 2020.

• Listings are sitting longer: The typical home sold in January had been on the market for nearly two months (56 days), the longest period since February 2020.

• Price growth is slowing: The median U.S. home price was up 4.1% year over year in January, the slowest growth since September and more in line with the rate experienced in the late 2010s.

• More negotiation is possible: The typical home sold for 1.8% less than its final asking price in January, the biggest discount in nearly two years.

• Deals are falling through: Home purchases were canceled at the highest January rate since at least 2017 last month.

2. White House to slash HUD’s disaster recovery office

The Trump administration intends to cut staffing at the Department of Housing and Urban Development’s Office of Community Planning and Development, which oversees disaster recovery, raising concerns over the nation’s ability to rebuild after hurricanes, wildfires, and other climate-related calamities.

The office, which funds home reconstruction and recovery efforts after major disasters, faces an 84% reduction in staff, from 936 employees to 150, according to an internal document obtained by The New York Times.

🎇 Are You Ready for Spring Selling Season?

With rates back on the rise and rents on the decline, this year’s spring selling season is shaping up to be a difficult one. But it doesn’t have to be doom and gloom if you have a good plan in place.

That’s where CoreLogic can help. With our Marketing Solutions, you can:

• Easily identify which of your current and past clients may be in the market for a new home, refinance or HELOC.

• Spot potential new, untapped areas of opportunity

• Find easy ways to grow your referral network

All from one, easy-to-use platform! Contact us today to schedule a demo and see how we can help you make this spring selling season a success!

3. More Nuggets

📊 Fannie Mae’s ESR Group forecasts rates to land at 6.6% by year's end. (NMP)

📉 Consumer sentiment plunges over tariff and inflation fears. (CNN)

⚖️ Massachusetts AG sues Hometap over ‘illegal reverse mortgage’. (Mass.gov)

🏘️ Existing-home sales decreased 4.9% in January. (NAR)

4. Black first-time buyers dominated the 2024 market

A new study from Zillow found that 62% of black homebuyers purchased their first home in 2024, just slightly below the record 63% level in 2023. In comparison, overall, first-time buyers made up just 44% of the market, down from 50% in 2023.

Zillow attributed the high percentage share to remote work that enabled some Black renters with more flexibility to pursue homeownership in affordable areas. Zillow said its research determined Black renters “are 29% more likely than other renters to be at a tipping point where remote work could make homeownership achievable.”

Structural barriers remain—Black households face the steepest affordability gaps, with only 17.6% of listings within reach. But down payment assistance and remote work flexibility have helped drive a record rebound, outpacing other racial groups.

5. Alexander brothers face more lawsuits accusing them of sexual assault

Eleven women filed civil lawsuits last week against luxury real estate stars Oren and Tal Alexander and their brother, Alon, alleging the men sexually assaulted them in New York, Miami, and Moscow.

These lawsuits add to a growing number of accusations from women alleging sexual assault by one or more of the brothers. The suits filed in New York included allegations of drugging, rape, and sexual assault from 2011 to 2019.

In December, federal prosecutors indicted Tal, 38, and his twin brothers, Oren and Alon, 37, on sex trafficking charges. They pleaded not guilty and remain in federal custody pending trial.

Related: Alexander brothers seek more than $50M for their Miami waterfront mansions

☀️ You’re all caught up. See you on Wednesday!

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