Home Prices Continue to Accelerate – According to the latest report from the National Association of REALTORS®, nearly every major metro area across the country saw home prices continue to escalate in the second quarter. Median single-family home prices increased year over year in 96% of measured markets. That percentage matches the metro areas in the first quarter that saw price gains. “Home prices have held up well, largely due to the combination of very strong demand for housing and a limited supply of homes for sale,” says Lawrence Yun, NAR’s chief economist. “Historically low inventory continues to reinforce and even increase prices in some areas.” The national median existing single-family home price in the second quarter was $291,300, up 4.2% annually. However, that is a slower pace of appreciation compared to the pre-pandemic growth rate of 7.7% that was recorded in the first quarter, NAR reports.
Source and link to the full article: National Association of REALTORS®
August Poised for 2020 Homebuying Peak – Based on a new realtor.com® report, the coronavirus pandemic this year has pushed the homebuying peak from May to August. Current growth in home sales, buyer demand, and housing prices have surpassed year-ago levels. “Real estate activity in the U.S. has regained its strength and continues on an upward trajectory as we enter the middle of the summer,” says Javier Vivas, director of economic research for realtor.com®. “However, a sustained seller comeback still hinges on back-to-school plans and extended lockdowns. The housing market will need to remain above pre-COVID levels for at least another 10 weeks to make up for the lost activity in the second quarter of the year.
Source and link to the full article: realtor.com®
Mortgage Applications Are 22% Higher Than a Year Ago – According to the Mortgage Bankers Association’s recent report, mortgage applications to purchase a home are 22% higher than a year ago, but last week applications did dip compared to the previous week. Purchase applications week to week were down 2% even as mortgage rates remain near record lows. The lack of supply and rising home prices also may be pressing on home buyers. The weekly headlines of mortgage rates hitting new lows also may be causing some buyers to lose some of their urgency, particularly since rates are largely expected to stay low for the remainder of the year.
Source and link to the full article: “Mortgage Rates Set Another Record Low, But Borrowers Take a Step Back,” CNBC (Aug. 5, 2020)
As Home Prices Rise, More Owners Become ‘Equity Rich’ – Based on a new report from ATTOM Data Solutions, despite the pandemic, home values continued to climb in the second quarter, with 15.2 million residential properties in the U.S. considered “equity rich.” That means the combined estimated amount of loans secured by those properties was 50% or less of their estimated market value. About 28% of properties in the second quarter were equity rich, up from 26.5% in the first quarter, according to the report. “Homeowners saw their equity rise far and wide throughout the United States during the second quarter of this year in yet another sign of the housing market punching back against the coronavirus pandemic,” says Todd Teta, chief product officer with ATTOM Data Solutions. “More property owners rose into equity-rich territory and escaped the seriously underwater lane, putting more money into the average household.”
Source and link to the full article: ATTOM Data Solutions