Housing starts fall to the lowest level in 5 years

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1. Housing starts fall to the lowest level in 5 years

According to the latest Census Bureau data, housing starts fell in May to their lowest level since May 2020, totaling 1.256 million (SAAR), down 4.6% YoY.

Here are other key data points:

• Building permits dropped to 1.393 million (SAAR), down 2.0% from April and 1.0% from last year.

• Single-family starts edged up to 924,000 — up 0.4% MoM, but down 7.3% YoY.

• New construction prices rose 3.4% YoY in April, but fell 3.9% from March.

2. Compass sues Zillow, escalating private listings fight

Compass has filed a federal lawsuit against Zillow, accusing it of violating antitrust laws by banning listings that aren’t on the MLS within 24 hours of being marketed.

The lawsuit, filed Monday in a New York federal court, alleges that Zillow is using its new listing policy — Listing Access Standards — to block competition. Compass claims these standards are designed to protect Zillow’s market dominance and shut out rivals.

Redfin was named a co-conspirator, but not a defendant. Critics allege that Compass’s model favors double-ending deals, while Zillow and others argue that private exclusives erode market transparency.

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3. Catch up quick

🏡 1 in 3 baby boomers say they’ll never sell their home. (Redfin)

🚨 New cryptocurrency scam targeting real estate professionals. (NAR)

📈 Home prices hit an all-time high. (Redfin)

🚫 Abbott vetoes Texas THC ban. (Axios)

🚖 Tesla rolls out robotaxis in Austin. (Reuters)

🏡 Fun read: Best small cities to enjoy an amazing quality of life. (Realtor.com)

4. Existing-home sales rise 0.8% in May

According to a NAR report, home sales climbed 0.8% in May to a seasonally adjusted annual rate of 4.03 million units. Despite the increase, the sales pace was the slowest for May since 2009 and marked the fourth consecutive month of YoY declines.

• Unsold inventory continues to rise substantially, with 1.54 million listings — a 20.3% gain from last year.

• Months of supply reached 4.6.

• The median sale price jumped 1.3% to $422,800, a record high for May.

• Homes typically remained on the market for 27 days in May, down from 29 days in April and up from 24 days in May 2024.

5. Paint colors that can boost your home’s sale price

According to a new study by Zillow, nearly one-third of homeowners paint their homes before listing them for sale. Zillow’s behavioral science team surveyed 4,200 recent and prospective homebuyers nationwide and found:

Here’s how much of a boost certain paint colors can give your home:

• Dark gray in the living room: +$2,593

• Navy blue in a bedroom: +$1,815

• Olive green on kitchen cabinets: +$1,597

• Mid-tone brown in a bathroom: +$680

By contrast, these colors may lower your home’s value:

• Bright yellow in the living room (-$3,891) or kitchen (-$3,915)

• Bright red in a bedroom (-$1,987) or living room (-$1,820)

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