We have a roundup of recent national real estate news headlines. With the hot real estate market we have seen, there can be an impact in various aspects of the market. Take a look at some of the below headlines. As always, we would love to discuss the market and any questions you may have.
Inventory Slowly Increases
According to a recent article on RIS Media, the real estate market has been recovering after the initial economic hit from Coronavirus. However, inventory has been low since even prior to the pandemic. There has been some recent improvement, which is a great sign.
“For the week ending Aug. 8, the Housing Market Recovery Index reached 105.6 nationwide—a 1.9-point increase over the previous week and 5.6 points over the pre-COVID baseline. The key to this improvement? Supply growth reached 101.7 nationwide, beating out January’s levels by 1.7 points. It’s a definite improvement, but recovery is still underway. Listing growth is still down 6 percent year-over-year. But the rest of the market indicators are positive, Days on market are currently four days faster than last year, and the median listing price grew by 9.9 percent YoY (http://blog.rismedia.com/2020/market-recovery-puzzle-inventory/).”
A Condo Resurgence Could Occur.
Condos have long been a viable real estate purchase—typically smaller and with less maintenance than single family homes, they still provide the benefit of owning real estate. CoreLogic reports that the lower price of condos last year could produce a resurgence, especially for millennials and first-time homebuyers. Baby boomers are also drawn to this market as they consider downsizing. “About 40% of all condo purchase mortgage applications last year were from first-time home buyers, compared to 33% of all non-condo purchase mortgage applications by this same buyer segment, CoreLogic reports. Further, 47% of all condo purchase mortgage applications were from millennials in 2019, up 2% from 2018 (https://magazine.realtor/daily-news/2020/08/25/millennials-could-prompt-condo-resurgence).”
Mortgage Rates Still Hover at Lows
Mortgage rates have hovered near historic lows. At the beginning of the month, they were at 2.88%, an all-time low. Even though they are slightly higher now, the impact is minimal for buyers, according to the National Association of Realtors. With these historically low rates, purchasing a home or refinancing may continue to make financial sense.