Existing home sales surge in September, major metropolitan areas see huge double digit home price gains in Q3 and single-family housing starts reach highest level since 2007. We take a closer look This Week in Real Estate.
“Home sales traditionally taper off toward the end of the year, but in September they surged beyond what we normally see during this season,”
Mortgage rates set record low for 10th time, U.S. mortgage credit availability dips in September, and new home sales are outpacing new home starts at a historic rate. We take a closer look This Week in Real Estate.
““With mortgage rates to remain near 3% for the next couple of years, homebuying activity is expected to stay strong for several more years,”
said Nadia Evangelou, a research economist for the National Association of REALTORS®, wrote on NAR’s Economists’ Outlook blog.
Homes sold two weeks faster in September due to unusual surge!
Pending home sales hit all-time high in August, homes sold 2 weeks faster in September due to an unusual surge in demand and another month of strong gains in August for single-family construction. We take a closer look at this week’s top real estate market stories This Week in Real Estate.
“Unseasonably high buyer interest coupled with historically low inventory and favorable mortgage rates are creating a perfect storm in the housing market.”
said Danielle Hale, chief economist at realtor.com.
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Existing home sales climb to record in June, U.S home seller profits rise to 36% in 2nd quarter, and home buyer purchase plans have not significantly changed because of COVID-19. We take a closer look This Week in Real Estate.
“The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown. This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.”
U.S. mortgage rates fall below 3%, breaking a 50-year record, builder confidence takes another massive jump and single family housing permits and starts were higher in June as housing demand and construction remain a bright spot for the economy. We take a closer look This Week in Real Estate.
If you’ve been waiting for the market to recover before listing your house, now is a good time to start getting it ready. New information from the Mortgage Banker’s Association shows mortgage applications to purchase homes is on the rise. Plus, the S&P 500 reached a two-month high and the Nasdaq finished at its highest close in three months. And, homebuilder confidence is rebounding. Click here to read more This Week in Real Estate.
We’re getting a better idea of how the worldwide coronavirus pandemic is impacting home sales as ATTOM Data Solutions releases its First Quarter Home Sales Report. Plus, a growing number of states are relaxing their social distancing protocols, but is it enough to cause the real estate market to thaw? And, homeownership rates are up despite the COVID-19 pandemic. We take a closer look This Week in Real Estate.
* U.S. Home Sellers Realized Average Price Gain of $67,100 in First Quarter of 2020. ATTOM Data Solutions released its First Quarter 2020 U.S. Home Sales Report Thursday, which shows that home sellers nationwide realized a home price gain of $67,100 on the typical sale, up from $66,264 in the fourth quarter of 2019 and up from $59,000 in the first quarter of last year. That $67,100 typical home-seller profit represented a 33.7 percent return on investment compared to the original purchase price, down from the post-recession high of 34.4 percent in the fourth quarter of 2019 but up from 32.8 percent a year ago. “The national housing market continued at full throttle in the first quarter of 2020, setting new price and profit records as it entered its ninth straight year of gains. After it looked like things were settling down last year, the market has again roared ahead, with significant increases,” said Todd Teta, chief product officer at ATTOM Data Solutions. “It is extremely important to note that the latest momentum is likely to hit a wall and reverse because of the drastic economic slowdown caused by the Coronavirus pandemic. Millions of Americans are newly unemployed, and most people are practicing social distancing, which could bring things to a halt just as the Spring buying season begins. Despite that cloud, the numbers for Q1 still do remain upbeat.”
* Home Purchase Applications Rise as Coronavirus Slowdown Begins to Thaw. With a growing number of states indicating over the last week that they are moving toward relaxing the social distancing protocols put in place to prevent the further spread of COVID-19, it appears that the real estate market may be beginning to thaw. In recent weeks, home purchase applications have declined sharply as people simply weren’t applying for mortgages. But that trend may be reversing, as new data from the Mortgage Bankers Association shows that home purchase mortgage applications recently rose to the highest level in nearly a month. “The news in this week’s release is that purchase applications, still recovering from a five-year low, increased 12% last week to the strongest level in almost a month,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.
* Homeownership Rate Up in the First Quarter 2020. According to the Census Bureau’s Housing Vacancy Survey (HVS), the U.S. homeownership rate reaches 65.3% in the first quarter 2020. This is 1.1 percentage points higher than the rate of 64.2% in the first quarter of 2019, but not statistically different from the previous quarter reading of 65.1%. Strong owner household formation with around 2.7 million homeowners added in the first quarter has driven up the homeownership rate, especially under the decreasing mortgage interest rates and strong new home sales and existing home sales in the first two months before the COVID-19 pandemic hit the economy. The HVS provides a timely measure of household formations – the key driver of housing demand. The housing stock-based HVS revealed that the number of households increased to 124.4 million in the first quarter of 2020, 2.0 million higher than a year ago.
As a marketing agent, I want to sell homes for more, not merely sell more homes. That’s why I focus on strategic pricing, negotiating, marketing and networking. My last listing went pending in less than a week, during the COVID-19 pandemic. If you’re interested in selling, let’s talk!
According to the Federal Reserve’s Flow of Funds report released This Week in Real Estate the value of U.S. owner-occupied homes increased to a record of $29.2 trillion in the third quarter of 2019. Home values rise as mortgage rates remain low. Fannie Mae believes the average fixed rate in 2020 will probably be 3.6% and if so, will be the lowest annual average ever recorded in Freddie Mac records going back to 1973. Below are a few highlights from the first full week of 2020…
* U.S. Home Values Rise to Record $29.2 Trillion, Fed Says. The value of all U.S. owner-occupied homes increased to a record $29.2 trillion in the third quarter, according to a Federal Reserve report known as the Flow of Funds. That was a gain of 4.2% from a year earlier, the slowest annualized increase since 2012. The collective value of U.S. homes is now 21% higher than the bubble peak reached in 2006. The Fed’s tally of home values for all U.S. residential real estate, whether occupied by homeowners or not, was $32.9 trillion, the report said.
* U.S. Mortgage Debt Hits a Record $15.8 Trillion. Outstanding U.S. mortgage debt rose to $15.8 trillion in the third quarter of 2019, according to the Federal Reserve. The biggest chunk of debt was held on homes, at $11.1 trillion, followed by commercial, with $3 trillion of loans, multifamily at $1.6 trillion and farms at $254.1 billion, according to the Fed data. Mortgage debt is rising as U.S. real estate values gain. Low mortgage rates boost real estate prices, and hence the volume of loans, because cheaper financing means buyers qualify for higher-balance mortgages and can bid more for properties they want. The average fixed rate probably will be 3.6% in 2020, which would be the lowest annual average ever recorded in Freddie Mac records going back to 1973.
* Homebuying Sentiment Up Sharply From 2018. Fannie Mae’s Home Purchase Sentiment Index (HPSI) finished out the year with little change from November to December, but with a strong increase over the December 2018 version. “The continued strength in the HPSI attests to the intention among consumers to purchase homes. This is consistent with the Fannie Mae forecast for 2020,” said Doug Duncan, Senior Vice President and Chief Economist. “The HPSI hit and remained near an all-time high in 2019, driven by the 16-percentage point year-over-year increase in the share of consumers believing it is a good time to buy. The HPSI’s strength supports our prediction of a healthy housing market in 2020, as well as consumers’ appetite and ability to absorb the expected increase in entry-level inventory.”