Home prices continue to appreciate with continued buyer demand

Home Prices: It’s All About Supply and Demand

Making our way through the month of June and entering the second half of the year, we face an undersupply of homes on the market. Keep in mind, this undersupply is going to vary by location and by price point. According to the National Association of Realtors (NAR), across the country, we currently have a 4.1 months supply of homes on the market. Historically, 6 months of supply is considered a balanced market. Anything over 6 months is a buyer’s market, meaning prices will depreciate. Anything below 6 months is a seller’s market, where prices appreciate. The graph below shows inventory across the country since 2010 in months supply of homes for sale.

Home Prices: It’s All About Supply and Demand | Keeping Current Matters

Given the undersupply of homes on the market today, there is upward pressure on prices. Looking at simple economics, when there is less of an item for sale and the demand is high, consumers are willing to pay more for that item. The undersupply is also prompting bidding wars, which can drive price points higher in the home sale process. According to a recent MarketWatch article:

“As buyers return to the market as the country rebounds from the pandemic, a limited inventory of homes for sale could fuel bidding wars and push prices higher.”

Home Prices: It’s All About Supply and Demand | Keeping Current Matters

In addition, experts forecasting home prices have updated their projections given the impact of the pandemic. The major institutions expect home prices to appreciate through 2022. The chart below, updated as of earlier this week, notes these forecasts. As the year progresses, we may see these projections revised in a continued upward trend, given the lack of homes on the market. This could drive home prices even higher.

Bottom Line

Many may think home prices will depreciate due to the economic slowdown from the coronavirus, but experts disagree. As we approach the second half of this year, we may actually see home prices rise even higher given the lack of homes for sale.

Orange County gears back into action….. SFR Median price up 6.2% in April 2020….

From PWR:

New Listings decreased 52.9 percent for Single Family homes and 48.3 percent for Townhouse-Condo homes. Pending Sales decreased 72.3 percent for Single Family homes and 75.1 percent for Townhouse-Condo homes. Inventory decreased 37.1 percent for Single Family homes and 29.1 percent for Townhouse-Condo homes.

Median Sales Price increased 6.2 percent to $754,000 for Single Family homes but remained flat for Townhouse-Condo homes. Days on Market decreased 39.5 percent for Single Family homes and 31.1 percent for Townhouse-Condo homes. Months Supply of Inventory decreased 35.3 percent for Single Family homes and 28.1 percent for Townhouse-Condo homes.

Thinking of Selling?? Now is the time… Call Regina Singh 714-883-5205

Rise to the Top of the Pool by Selling Your House Today

Rise to the Top of the Pool by Selling Your House Today

With the release of the latest Economic Pulse Flash Survey from the National Association of Realtors (NAR), results show that people selling their houses today are holding strong on price.

According to the most recent data, 74% of real estate agents noted that sellers are not dropping listing prices to attract more buyers.Lawrence Yun, Chief Economist at NAR, noted:“The housing market faced an inventory shortage before the pandemic. Given that there are even fewer new listings during the pandemic, home sellers are taking a calm approach and appear unwilling to lower prices to attract buyers during the temporary disruptions to the economy.”

Thinking of selling, call now…

9 Essential Home Office Design Tips

9 Essential Home Office Design Tips

Are you planning to add a home office to your home? Whether your home office design will be located in an annex, a small bedroom or just the corner of a room, there are a few essentials you will want to consider. If you spend the full work week there or even just a few hours, it’s important that your home office be a comfortable and inviting place to spend time and to get your work done efficiently.

Read for 9 essential tips for creating a beautiful and practical home office design:

https://www.roomsketcher.com/blog/home-office-design/

New FHFA Guidance Allows Borrowers In Forbearance To Access Record-Low Rates

May 19, 2020 Navi Persaud

Photo credit: Getty Images/krblokhin

The Federal Housing Finance Agency has announced that Fannie Mae and Freddie Mac borrowers in forbearance can apply for refinancing and new purchase mortgages once their loans are current. It waives a previous mandatory wait of 12 months. That move allows faster access to record-low rates. According to the FHFA, borrowers are eligible to refi or purchase a new home if they are current on their mortgage—in forbearance but continued to make mortgage payments or reinstated their mortgage. Borrowers are eligible to refinance or buy a new home three months after their forbearance ends and they have made three consecutive payments under their repayment plan, or payment deferral option or loan modification. “Homeowners who are in COVID-19 forbearance, but continue to make their mortgage payment, will not be penalized,” said FHFA Director Mark Calabria. “Today’s action allows homeowners to access record low mortgage rates and keeps the mortgage market functioning as efficiently as possible.”

https://nationalmortgageprofessional.com/news/74956/fhfa-guidance-allows-borrowers-forbearance-access-record-rates

Will Home Values Appreciate or Depreciate in 2020?

Will Home Values Appreciate or Depreciate in 2020?

Freddie Mac:

“Two forces prevent a collapse in house prices. First, as we indicated in our earlier research report, U.S. housing markets face a large supply deficit. Second, population growth and pent up household formations provide a tailwind to housing demand.”

Listening to the experts, it seems that prices will remain stable throughout 2020. If you’re thinking about listing your home, capitalize on the somewhat surprising demand in the market now.

U.S. Homeownership Rate Rises to Highest Point in 8 Years

U.S. Homeownership Rate Rises to Highest Point in 8 Years | Keeping Current Matters

The homeownership rates among all age groups increased in the first quarter 2020. Households under 35, mostly first-time homebuyers, registered the largest gains, with the homeownership rate up 1.9 percentage points from a year ago.

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 National Association of Home Builders (NAHB) explained