Monday, November 23, 2020 / by Amy McLeod
Savvy home buyers know that winter is typically a good time to embark on a house hunt, since much of their competition stays holed up at home until spring. But this winter, buyers might notice that despite the cold and the holidays, they've got company.
Lots of it, in fact.
"Normally winter is a good time for buyers," says realtor.com® chief economist Danielle Hale. However, since the coronavirus kept buyers on lockdown for much of spring, many are making up for lost time by home shopping hard right now.
"This year's unusual seasonal pattern means that buyers aren't getting the usual break from the market frenzy that they typically do in the cooler weather," Hale explains.
As a result, this winter is shaping up to be a seller's market, with low real estate inventory, high prices, and bidding wars that could give buyers a major run for their money.
This doesn't mean you should throw in the towel—just that you'll have to hone your house hunt in new wa; ...
Wednesday, November 4, 2020 / by Amy McLeod
Selling a home in winter is often a slow process. Since many home buyers traditionally hunker down as the temperature drops, particularly during the holidays, home sellers with real estate on the market typically see fewer buyers and lower offers.
That's your typical winter, but this winter is shaping up to be a whole different reality, even a hot seller's market.
According to Lawrence Yun, chief economist at the National Association of Realtors®, “It will be one of the best winter sales years ever.”
The coronavirus has changed real estate in a multitude of ways, and perhaps one of the biggest is the sea of buyers who put off buying during the first wave of the pandemic and are now slated to flood the market this winter.
"Sellers will have the ball in their court so to speak, as there are more buyers than sellers," says Danielle Hale, chief economist at realtor.com®. "This means seller-friendly trends like rising home prices y ...
Monday, October 26, 2020 / by Amy McLeod
Equity continues to rise, helping American homeowners secure a much more stable financial future. According to the most recent data from CoreLogic, the average homeowner gained $9,800 in equity over the past year. In addition, experts project 2020 home prices to continue rising. With prices going up, equity gains will also keep accelerating. Black Knight just reported:
“The annual percent change in the overall median existing single-family-home price has skyrocketed in the past several months, with recent numbers at three to five times higher than rates seen in the past several years.”
Jeff Tucker, Senior Economist at Zillow, just qualified recent price increases as “jaw-dropping” and “within a hair’s breadth of double-digit year-over-year appreciation.”
Knowing equity will help enable many homeowners to better survive the economic distress caused by the ongoing w ...
Monday, October 19, 2020 / by Amy McLeod
When the coronavirus pandemic gutted the strongest U.S. economy, many assumed another recession would bring rock-bottom home prices along with it. Instead, home prices defied logical assumptions—and soared to new heights.
Paradoxically enough, one of the biggest drivers of the double-digit price hikes is the very same record-low mortgage interest rates that put homeownership within reach for the masses. They fell to a new all-time low of 2.81% in the week ending Oct. 15, according to Freddie Mac. That's shaved a considerable amount off of monthly mortgage payments, allowing buyers to stretch their budgets further.
Those get-'em-before-they're-gone rates are giving folks who are still employed and have been mulling purchasing a new home a bad case of FOMO. Add in months of being cooped up at home, and suddenly there's a flood of buyers seeking larger homes, often with home offices and big backyards. That's ratcheted up demand just as the number of homes for sale has fallen to o ...
Monday, August 24, 2020 / by Amy McLeod
The nation's surging home prices don't seem to care about the recession the country is mired in. They can't be bothered by the deadly coronavirus pandemic or the double-digit unemployment that's come as a result. Instead, prices are defying logic, expectations, and even belief, as they shoot up to record highs amid an unprecedented health and economic crisis.
It has all led some to wonder: Are some markets getting too hot? Could a significant correction be around the corner?
Such questions have become louder in recent weeks, in the face of some startling growth numbers, particularly in some high-priced California and less expensive Rust Belt, Midwestern, and Southern markets.
In some of these metropolitan areas, prices have shot up by more than 20% in the past year alone. Just how sustainable is this seemingly irrational home price exuberance, anyway? Could we be entering the dreaded bubble territory once again?
Nationally, the median home list priceo ...