London New-Home Sales Collapse Amid Developer Struggles

The housing market in London is facing a severe crisis, with new home sales plummeting to catastrophic levels not seen since the early 1990s, largely due to a combination of high taxes demanded by the Greater London Authority, regulatory hurdles, and increased building and financing costs. Analysts warn that the market is failing to function properly, with only 9% of the Government's half-year housing delivery target being met, and private home starts halving compared to the previous year. In the U.S., while the median home sale price reached a record high of $399,633, pending sales declined by 3.5%, and the market shows mixed signals with increased mortgage applications and home touring. Meanwhile, the U.S. condo market is experiencing a significant downturn, with average sales prices dropping 2.2% year-over-year and some regions like Florida and Texas seeing declines of up to one-third, driven by an oversupply of sellers, soaring HOA fees, insurance costs, and financing difficulties. The condo market slump is further exacerbated by restrictions on certain loan types, limiting buyer access and contributing to a slow market. Overall, both London and U.S. housing markets are contending with complex supply and demand challenges, regulatory pressures, and affordability issues that threaten development and sales.