Housing markets face shifts in US and Great Britain

Global housing markets are experiencing significant shifts driven by high mortgage rates, inventory shortages, and changing buyer behaviors. In the Chicago metro area, inventory has decreased by 9.5% year-over-year while prices continue to rise, making housing costs a primary concern for 41% of local residents.

Demographic trends show first-time homebuyers have reached a record low of 21%, while Boomers now account for 42% of buyers, often utilizing equity-based purchases. Regulatory and industry changes are also impacting the sector; since August 2024, buyers in certain markets require formal agreements with licensed professionals before viewing homes. Additionally, new rules allowing sellers to delay public listings have led to legal friction, including a lawsuit filed by Zillow against the brokerage Compass.

In Great Britain, market data from Zoopla indicates that homes in nearly half of the local authorities are taking longer to sell than the previous year. While the national average selling time remains steady at 42 days, regional disparities are notable. Scotland contains the ten fastest-selling markets, whereas areas like Melton in the East Midlands are seeing selling times extend to 76 days or more due to increased buyer caution and volatile mortgage rates.