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Housing Market Update

New Home Sales were up 0.6% for the month of April.  This report measures signed contracts on new homes.  Year-over-year, sales were down 6.2%.  The median home price was released at $309,900, which is down from $339,000 from the prior report.  Median home price does not show that home prices were necessarily lower, but that homes for sale during this time might have taken lower price offerings. There were 325,000 new homes for sale, which was slightly lower than March’s number of 333,000 and is showing a further tightening of inventory.

The Case-Shiller Home Price Index reported a rating of 4.4% for the month of March. This report tracks the changes in the value of residential real estate across the US, and it increased by 0.2% since last release from 4.2%

The Federal Housing Finance Agency (FHFA) released their House Price Index for March, and it showed that home prices increased by 0.1%.  Compared to last year, home prices have increased by 5.9%!   This report measures home price appreciation on single-family homes with conforming loan amounts.

Overall, home pricing across the nation is still holding strong.  There might be some homes selling at a discount because of timing and the availability to find the right buyer, but as we see the economy slowly reopen, the housing market will continue to push forward as demand for homes is still out weighing supply.

We Are Happy To Help” Call us at 855-LOANS-USA or visit us at AdvisorsMortgage.com

Sources:

www.census.gov

https://bit.ly/3gPEafo

www.fhfa.gov

 


Housing Demand Heating Up

Obviously, COVID-19 has had an impact on the housing market and has created new challenges for potential home buyers to effectively locate and purchase their dream home.  It appears, however, that we have turned the corner and the spring market is finally heading in the right direction. 

According to the Mortgage Bankers Association’s seasonally-adjusted index, mortgage applications to purchase a home increased 6% week to week, which represents five consecutive weeks of improvement.  As a whole, purchase volume is just 1.5% lower than last year at this time, which is amazing considering the challenges presented by COVID-19.  To put it in perspective, just six weeks ago, purchase volume was down 35% from the same time last year. 

Combining increased purchase volume, along with record-low mortgage rates, it’s no surprise that buyers are ready and willing to come back to the housing market.  As this demand continues to build, it is fully expected that more homes will begin to hit the market in the coming weeks!

Sources: https://cnb.cx/2LOs6fX

We’re Happy to Help Call us at 855-LOANS-USA or visit us at AdvisorsMortgage.com


Demand for Homes

CoreLogic released their Home Price Index (HPI) showing that homes increased in price by 4.5% from March of 2019 to March of 2020.  It also showed that prices increased by 1.3% from February to March of this year.  The HPI has increased on a year over year basis every month since February 2012!  The housing market was surely very strong pre-coronavirus, but even during this crisis, homes are still selling.  Forecasts are showing that there might be a slight dip in home appreciation, but home values will hang in there. Some experts are even saying that they might end the year up.  CoreLogic is forecasting a 0.5% year over year gain. 

When speaking of home appreciation, it is also great to focus in what areas might be getting the most attention for new home buyers in this new COVID-19 environment.  The Harris Poll showed that 39% of respondents who live in urban areas have considered moving to a less populated area.  They are saying that homes in the suburbs or more rural areas might see additional demand from new buyers.  Today, more than ever, the American worker has become more used to, and more accepting of remote work.  This means that homes outside of densely populated areas might be more desirable or sought out by those who embrace the remote working experience.

We Are Happy To Help” Call us at 855-LOANS-USA or visit us at AdvisorsMortgage.com

Source: CoreLogic


Advisors’ 30 Second Market Update for the Week of May 11, 2020.

COVID-19 has obviously had a major impact on businesses and industries all over the world.  This impact will also shape how these very same businesses and industries evolve and adapt in the future.  The Real Estate industry is no different, and in many ways has already started to evolve. 

Real estate agents have begun showing homes via virtual tours with 360 views, along with video chats.  Home buyers are putting in offers for homes based off internet searches, versus going to open houses to see the house.  A study by the National Association of Realtors concluded that 52% of home buyers found the home they purchased by discovering it online, versus 6% finding it at an in-person open house. 

Appraisers now have the ability to inspect some homes with a “drive by” or exterior review of the property.  The exterior analysis combined with data available from third party resources about the property result in an appraiser never needing to step foot inside the home.

Overall, the real estate industry is evolving, and Advisors Mortgage Group will continue to evolve with it.

Call your Advisors Mortgage Loan Officer today to discuss the current market in more detail and to learn what you qualify for.

We Are Happy To Help” Call us at 855-LOANS-USA or visit us at AdvisorsMortgage.com

Sources: https://bit.ly/2yELXvc


Housing Market Update

 

The National Association of Realtors (NAR) has released their monthly Pending Home Sales report for the month of March.  This report was partially pre-coronavirus, but the data showed that contracts for existing, single family homes, condominiums and co-ops have slowed.  They were down 20.8% in March and down around 16% compared to last year.  But, there is a silver lining.  NAR’s Chief Economist Lawrence Yun said, “The housing market is temporarily grappling with the coronavirus-induced shutdown, which pulled down new listings and new contracts. As consumers become more accustomed to social distancing protocols, and with the economy slowly and safely reopening, listings and buying activity will resume, especially given the record low mortgage rates.”  He added, “Due to the ongoing housing shortage, home prices are likely to squeeze out a gain in 2020 to a new record high,” Larry also projected that the national median home price will increase 1.3% for the year.

 

As the coronavirus continues to affect the market, we will be seeing many economic reports worsen. At the same time, window of opportunity is opening for those looking to take advantage of temporary period of discounted homes.  Also, as the virus dissipates, the housing market should rebound and repair its losses and finish the year at new pricing record highs.

 

We Are Happy To Help” Call us at 855-LOANS-USA or visit us at AdvisorsMortgage.com

 

Sources:

https://on.mktw.net/2VRaExj


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