TNO Real Estate: Aug. 5

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The housing market is clearly changing from pandemic-fueled highs felt especially in 2021. Homebuilders are reporting canceled contracts are up, as are incentives. Like many others, they're rapidly adjusting to a slower market after two years of unprecedented demand and record-price appreciation.?

What's next: The outlook is murkier than ever, thanks to the Federal Reserve's moves to combat inflation with fairly aggressive interest-rate hikes and broader economic pressures (although, as we saw this morning, job growth remains extraordinarily strong). Some of the homebuying market is psychological — so fears of a recession or a housing market crash (which most economists say is not happening) may sideline some buyers, in addition to it simply costing more to buy a home these days.?

But it's clear records set in 2021 won't be broken this year on most metrics tracked by builders as demand weakens and some buyers pull out of contracts.

June turning point: About 60,000 of home-purchase agreements fell through that month, or 14.9% of homes that went under contract that month, according to Seattle-based Redfin Corp. In June 2021, that share was 11.2%.

Here are other top real estate stories from around the ACBJ network:

1. Wells Fargo & Co. is establishing a major office operation in Irving, Texas, that could include up to $31 million in incentives, 800,000 square feet of office space and up to 4,000 employees.
2. The two-building Atlantic Yards office property in Atlanta sold for $385 million — which sources tell Savannah Sicurella at the Atlanta Business Chronicle is less than what it could've fetched a few months ago.
3. It seems like some U.S. office markets are battling a case of long Covid, with continued depressed vacancy and value decreases among major office buildings.
4. Five questions about what Twitter Inc.'s office pullback means for Bay Area commercial real estate.
5. Food-and-beverage manufacturers, which are big eaters of industrial space, are struggling with water access in hot warehouse markets like Phoenix. Companies are having to get creative in how to meet their big water-usage needs.
6. The tech office story is a nuanced one, with plenty of companies deciding to hang on to their office space even with more people working from home. Google LLC is purchasing an office building in Chicago and quietly leasing more space in Durham, North Carolina, while others are downsizing significantly.
7. Women make up only 3% of the construction labor force nationally. Hear from women in the skilled trades in the San Antonio market about the hurdles and opportunities to bringing more women into construction.
8. Here's what to watch in affordable housing after the U.S. Department of Treasury revised its guidance around American Rescue Plan Act funds.

Built by Ashley Fahey, editor of The National Observer: Real Estate. Reach me with tips, questions and feedback at?[email protected]