Core Insights - The Federal Reserve is expected to implement its first interest rate cut in a year, with mortgage rates at an 11-month low, yet home sales remain at their lowest pace since 1995, indicating a complex housing market situation [2][4] - There is a significant pent-up demand in the housing market, but skepticism exists regarding the Fed's ability to meet market expectations for rapid rate cuts [2][3] - The balance of power between buyers and sellers has improved, although many sellers are reluctant to lower prices, and affordability remains a challenge for many Americans [3][5] Housing Market Conditions - The housing market is currently experiencing a supply of five months, the best summer inventory situation in nearly a decade, with some metro areas classified as buyers' markets [4] - Despite the favorable inventory situation, many sellers are unwilling to sell unless they receive their desired price, and low mortgage rates from the pandemic era deter many homeowners from moving [5] - Homeownership affordability is a significant issue, with average buyers needing to allocate 60% of their paycheck to cover all housing costs for a median-priced home [6] Renting vs. Buying - The current market conditions favor renting over buying, with an average cost difference of about $812 per month, marking the largest margin since the early 1980s [7] - Lower-income households face particularly challenging circumstances in the current housing market [7]

Group 1 - The US mortgage market has stabilized after four weeks of decline, with the average rate for a 30-year fixed mortgage remaining at 6.58% [1] - The National Association of Realtors reported that the median price of existing homes in July increased by only 0.2% year-over-year to $422,400, marking the weakest performance since June of the previous year [1] - Home sales of existing homes increased by 2% month-over-month in July to an annualized rate of 4.01 million units, surpassing market expectations of 3.92 million units [1] Group 2 - Only 28% of homes currently on the market are affordable for typical families, indicating a significant gap in housing affordability [2] - Since 2019, the purchasing power of homebuyers has decreased by approximately $30,000 [2] - To make typical housing affordable for American families, home prices would need to drop by 18% or mortgage rates would need to fall to 4.43% [2]

Core Viewpoint - The ongoing U.S. real estate crisis has significantly impacted even the previously resilient new home market, with a notable decline in prices across major metropolitan areas [3]. Group 1: Price Decline - Approximately one-third of the U.S. real estate market has experienced year-over-year price declines, with new homes now seeing widespread price reductions [3]. - As of Q2 2025, the median listing price for new homes in the U.S. was $450,000, down over 12% from $512,200 in the same period of 2024 [3]. - The primary reason for the price drop is a surge in inventory levels across various regions [3]. Group 2: Cities with Significant Price Drops - The five cities with the most significant year-over-year price declines for new homes are: 1. Little Rock, Arkansas: -15.6% 2. Austin, Texas: -8.5% 3. Wichita, Kansas: -7.9% 4. Jacksonville, Florida: -7.8% 5. Cape Coral, Florida: -7.4% [4]. - Austin has been identified as the epicenter of the new home market collapse [4]. Group 3: Market Dynamics - During the pandemic, cities like Austin and Miami saw a surge in new home development due to an influx of remote workers, but demand has since plummeted, leading to excess inventory [5]. - The initial appeal of these markets has diminished due to rising costs and reduced attractiveness, resulting in fewer new residents [6]. - In Miami, high insurance and property management fees have deterred potential buyers [7]. Group 4: Seller Strategies - To stimulate sales, sellers are offering incentives such as covering closing costs, providing renovation subsidies, lowering mortgage rates, and even paying for property management fees [8]. - In Q1 2025, 44.4% of home transactions in the U.S. included "concessions," indicating seller anxiety and a shift towards a more balanced market, particularly in the South and West [8].

Core Insights - News Corporation (NWSA) is set to report its fourth-quarter fiscal 2025 results on August 5, with revenue expectations of $2.10 billion, reflecting an 18.37% decline year-over-year, while earnings per share (EPS) is projected to grow by 11.76% to 19 cents [1][9]. Financial Performance - The company has a mixed earnings surprise history, beating the Zacks Consensus Estimate in two of the last four quarters, missing in one, and matching in another, resulting in an average surprise of 8.51% [2]. - NWSA's fiscal fourth-quarter performance is anticipated to benefit from strong segments such as Digital Real Estate, Book Publishing, and Dow Jones, alongside a disciplined capital return strategy [3]. Strategic Developments - Recent acquisitions, including Oxford Analytica and DragonFly Intelligence, have bolstered NWSA's intelligence capabilities, particularly in geopolitical and macroeconomic analysis [4]. - The Dow Jones Energy segment reported a 10% revenue growth, driven by investments in proprietary pricing tools and a new carbon and clean fuels platform [4]. - Realtor.com is expected to perform well, contributing 22% to revenues, supported by increased demand in rental, seller, and new-home categories [5]. Financial Health - The company authorized a $1 billion share repurchase, indicating confidence in its financial health, supported by $539 million in free cash flow and over $2.1 billion in cash as of March 31, 2025 [6]. - NWSA ended the fiscal third quarter with a net cash position of $130 million, allowing for buybacks without compromising investment priorities [6]. Challenges - The company is likely to face challenges due to ongoing advertising turbulence, particularly in the News Media segment, which saw an 8% revenue decline in the fiscal third quarter [7]. - Advertising revenues fell by $19 million in the fiscal third quarter, impacting segment performance despite cost-cutting measures [7].

Financial Data and Key Metrics Changes - CoStar Group achieved revenue of $781 million, a strong 15% increase compared to the previous year, marking the fifty-seventh consecutive quarter of double-digit revenue growth [6][55] - Adjusted EBITDA rose significantly to $85 million, representing an impressive 108% increase compared to Q2 2024, with a profit margin of 11% [6][56] - Net new bookings totaled $93 million, a remarkable 65% increase over the previous quarter and a 38% increase year over year, setting a new record for the highest quarterly net new bookings in CoStar Group's history [6][56] Business Line Data and Key Metrics Changes - Apartments.com reported revenue of $292 million, an 11% increase from Q2 2024, with net new bookings of $45 million, representing a 20% increase year over year [7][56] - Homes.com achieved residential annualized net new bookings of $12 million for the quarter, with revenue growing by 8% compared to Q2 2024 [17][56] - CoStar product revenue reached $271 million in Q2 2025, with a 7% year-over-year growth [32][56] Market Data and Key Metrics Changes - The UK residential marketplace saw a 20% year-over-year increase in inventory, reaching over 800,000 listings [29] - The commercial real estate market experienced a 43% year-over-year increase in transaction volumes, with office transaction volumes spiking 71% [36] - International businesses achieved 90% year-over-year growth in net new bookings in Q2 2025 compared to Q2 2024 [36] Company Strategy and Development Direction - CoStar is expanding its core sales team by 20% and tripling the homes.com sales force from 230 to about 750 by the end of 2025 to capture additional growth opportunities [7] - The company plans to integrate Matterport's capabilities more deeply into its platforms, shifting Matterport towards a business-to-business approach [49][52] - CoStar is in the final stages of acquiring Domain Holdings, which is expected to close in Q3 2025, enhancing its market position in Australia [30][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong competitive position of apartments.com, noting no loss of market share despite competitive pressures [68][69] - The company anticipates continued growth in residential revenue, expecting a 20% increase in 2025 [58] - Management highlighted the ongoing challenges in the commercial real estate market, particularly in the office segment, but noted positive trends in transaction volumes [36] Other Important Information - CoStar's cash balance as of June 30 was $3.7 billion, earning net interest income of $33 million in Q2 2025 [62] - The company repurchased 585,000 shares for $45 million in Q2, with plans to repurchase at least $150 million of the $500 million authorized in 2025 [63] - The company is revising its revenue guidance for 2025 to a range of $3.135 billion to $3.155 billion, implying an annual growth rate of 15% [64] Q&A Session Summary Question: Competitive dynamics in apartments.com - Management stated there has been no loss of share or ability to capture price value at apartments.com, emphasizing strong product performance and high renewal rates [68][69] Question: Improvement in homes.com NPS scores - Management attributed the improvement to a better product offering and effective communication of value propositions to clients, noting the learning curve for the sales force [73][76] Question: Pricing strategies across business segments - Management indicated that while the lender ASP is higher than standard broker owner ASP, they are focusing on penetration pricing for new products to build market share [82][84] Question: Contextualizing new member growth for homes.com - Management did not provide specific details on member growth but indicated strong momentum and improvements in NPS and bookings [86] Question: EBITDA guidance for the third quarter - Management clarified that the guidance reflects timing shifts and organic performance, with the majority of the delta attributed to timing [88]

You've been waiting for mortgage rates to drop below 6% for over three years. So far, a handful of national mortgage lenders are offering 30-year fixed-rate loans near 5.5%. Tempted? MORE: See our top picks for mortgage lenders for first-time home buyers. Where to find 5% mortgage rates Mortgage rates in the 5% range can be found, but it takes some shopping. A Yahoo Finance weekly survey of lenders with the best rates reveals six major lenders offering interest rates below 6%. Three of the lenders, N ...

Core Insights - The article discusses the impact of rising rental costs and inflation on housing affordability in the U.S., particularly affecting recent college graduates [1][5] - It highlights a list of cities deemed most suitable for recent graduates to rent, based on factors like rental income ratio and job availability [2][3] Rental Market Overview - Rental prices have surged approximately 30% since the pandemic, with the average monthly rent in the U.S. reaching $2,100 as of May 25 [1] - The average salary is slightly above $63,000, leading to a situation where some individuals spend about 40% of their income on rent, exceeding the recommended 30% [1] Best Cities for Recent Graduates - Realtor.com released a ranking of the top ten cities for recent graduates to rent, considering rental affordability and job opportunities [2][3] - Austin, Texas, ranks first with a rental income ratio of 18.9%, indicating lower rent relative to income [2] - The top ten cities and their median rents are as follows: 1. Austin, Texas ($1,504) 2. Raleigh, North Carolina ($1,524) 3. Overland Park, Kansas ($1,351) 4. Minneapolis, Minnesota ($1,528) 5. St. Louis, Missouri ($1,335) 6. Richmond, Virginia ($1,502) 7. Pittsburgh, Pennsylvania ($1,461) 8. Scottsdale, Arizona ($1,530) 9. Richardson, Texas ($1,472) 10. Atlanta, Georgia ($1,604) [3][4] Economic Considerations - Renters in these cities can save about 7% on rental costs compared to other markets, with the number of recent graduates in these areas being double that of the top 50 metropolitan areas in the U.S. [4] - Despite the favorable rankings, potential renters must weigh the availability of rental properties against affordability, job market strength, and lifestyle convenience [5] Long-term Rental Trends - A study indicates that typical American renters may spend over $333,000 during their rental period, factoring in bills and additional costs [5] - The delay in major life milestones, such as marriage and home buying, is expected to prolong the duration of renting for many individuals [6]

Group 1 - The core viewpoint indicates that while the sales of second-hand homes in the U.S. may decline in March, home prices continue to rise, although the pace of price increases may slow down or even decline due to changing market dynamics [1][2] - Economists predict a slight decrease in the annualized sales rate of second-hand homes from 4.26 million in February to 4.12 million in March, despite a year-over-year price increase of 4.6% [1] - A survey by Fannie Mae suggests that experts expect home prices to rise by 3.4% in 2025, a decrease from the 5.8% increase recorded for 2024 [1] Group 2 - Zillow's latest forecast predicts a 1.9% decline in home prices by 2025, attributing this to a shift in the balance between buyers and sellers as mortgage rates decrease [2] - The increase in market inventory is a significant factor that could lead to a decline in home prices, with listings up nearly 30% year-over-year as of March 2025 [2] - In areas like Austin, Texas, the number of listings has surpassed pre-pandemic levels, leading to a decrease in listing prices per square foot, indicating a potential price adjustment in response to increased supply and reduced buyer activity [2]

Mortgage rates continue to remain in a narrow range into 2026. The 30-year fixed mortgage rate has hovered within 11 basis points of its 2025 low since October 23. The national average 30-year rate is now 6.16%, according to Freddie Mac. So, what does this mean for the 2026 housing market? Will mortgage rates continue to go down? What will it take to push rates lower? Mortgage rates have generally been falling since the end of May. Weekly moves are small, but longer-term changes are more apparent. Howe ...

Core Insights - Realtor.com® and Local Logic released a ranking of the best U.S. cities for car-free transit, emphasizing sustainability through walking, biking, and public transit [1][3] - The top three cities are Hoboken, NJ; Cambridge, MA; and Brookline, MA, with a significant concentration of top-ranked cities in the Northeast and California's Bay Area [1][2] Ranking Methodology - The ranking was based on U.S. Census data regarding car-free commuters, combined with Local Logic's proprietary Location Scores that assess walkability, bikeability, and public transit access [3][4] - These Location Scores are derived from billions of data points related to local infrastructure and amenities, providing a comprehensive view of neighborhood functionality [3][4] Top Eco-Friendly Cities - **Hoboken, NJ**: Nearly 80% of residents commute without a car, benefiting from a dense, walkable grid and access to PATH trains, ferries, and buses [5] - **Cambridge, MA**: Known for smart city planning and significant investment in bike infrastructure, making car-free commuting a natural choice [6] - **Brookline, MA**: Well-connected by transit and designed for easy navigation on foot, promoting a car-free lifestyle [7] - **Berkeley, CA**: Strong cycling culture and progressive urban policies support car-free commuting [8] - **Washington, D.C.**: Approximately two-thirds of residents commute car-free, with a focus on safer, walkable streets [9] - **San Francisco**: Despite its hills, it remains transit- and pedestrian-friendly, with a long-standing transit-first policy [10] - **Somerville, MA**: Investments in active transportation and compact urban design facilitate car-free commuting [11] - **Boston, MA**: Nearly 58% of locals commute without a car, supported by strong transit coverage and modern mobility plans [12] - **Seattle**: Over half of residents commute without driving, aided by a growing transit network [13] - **Arlington, VA**: Focuses on growth around Metro stations, supporting sustainable commuting options [14] Key Statistics - The ranking includes median list prices, days on the market, and various friendliness scores for cycling, pedestrian access, and transit [15] - For example, Hoboken has a median list price of $785,000 and a cycling friendliness score of 7.0 [15]