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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


30-Second Update:  Zillow Reports Large Online Spike in Viewer Traffic

Due to Covid-19, there are obvious challenges to both people looking to sell and buy homes. In normal times, sellers would be looking to take advantage of the typically robust spring housing market.  Home buyers would be looking to capitalize on the current ultra-low interest rate environment, coupled with the presumed flood of new homes listed for sale.  While that may not be how the spring market of 2020 is shaping up as of yet, Zillow has just reported that there are actually more homebuyers actively looking for homes online than a year ago.  For the week ending April 13th, home search views have increased by 13% compared to last year.  Clearly the demand to buy is still there, and home buyers are looking to enter into the market. 

Believe it or not, now may be the perfect time for home sellers to list their home and capitalize on this demand, as well as home buyers to continue to take advantage of the interest rates remaining low and look for bargains on homes that remain on the market!  Reach out to your Advisors Mortgage Loan Officer today to discuss all your home buying and selling questions!

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

Source: https://bit.ly/2W55H2z


 

The Coronavirus Effect on Housing

2020 started as the healthiest year for home sales in history.  We’ve relayed the great appreciation rates coming from CoreLogic, where they even indicated annual forecasts of appreciation near 4-5%, showing more strength going forward.   Since the Coronavirus has continued, we are now seeing a slight drop in home buyer demand.  Some models of the virus’s spread are showing a housing market declining from now until August, and others are showing the declining market from now until October.  There is light at the end of this tunnel, however, and we have to play this intelligently.  With either model, there is most likely going to be declining prices in many areas of the country. 

So how do we handle this intelligently? Sellers should still price correctly and know that your crop of buyers is going to be smaller over the next few months during this period, but it will come back soon.  Again, some experts are predicting a bounce-back of the market in August.

For buyers, they should stay in the game and push to purchase a home at a 3-12% discount as some experts are saying.  Combining the fact that interest rates are still very low, with homes potentially selling at a discount, affordability has just increased for home buyers.  This is going to be a bumpy road, but it will be temporary, and if you are looking to purchase, this may be one of the best windows you have to capture a great opportunity before housing comes roaring back.

 

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

 

Sources:

CoreLogic


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