This week we have the latest national real estate news headlines. Across the board, we continue to see significant market activity, even in the midst of COVID. Here are some of the articles:
Home Prices Increase in 20 US Cities:
We have seen historically low mortgage rates, which gives buyers more buying power, and the ability to search for homes outside of their previous price range. According to this HousingWire article, “The S&P CoreLogic Case-Shiller index of home prices in 20 U.S. cities gained 3.9% in July from a year ago, the biggest advance since 2018, as rock-bottom mortgage rates made it possible for people to bid higher for properties” (https://www.housingwire.com/articles/home-price-index-gains-the-most-since-2018/). The lack of inventory, combined with the low mortgage rates, has driven the price of homes up.
Contract Signings Surge to Record High:
In similar news, contract signings have increased. They are 24.2% higher than a year ago. Again, the low interest rates contribute to this activity. Lawrence Yun, the chief economist for the National Association of Realtors said, “Tremendously low mortgage rates—below 3%—have again helped pending home sales climb in August. Additionally, the Fed intends to hold [its] short-term funds rates near 0% for the foreseeable future, which should, in the absence of inflationary pressure, keep mortgage rates low, and that will undoubtedly aid home buyers continuing to enter the marketplace (https://magazine.realtor/daily-news/2020/09/30/buying-sprees-continue-contract-signings-surge-to-record-high).”
Home Upgrades Buyers Want:
As a result of COVID, buyer upgrade preferences are changing. Some of the top items include: outdoor space, an office/classroom, upgraded laundry room, separation of space, and a home gym. If you’re thinking of upgrades with an ROI, these are some to consider as consumer mentality has certainly shifted as a result of the pandemic (https://www.realtor.com/advice/sell/improvements-upgrades-to-help-sell-your-home-during-pandemic/).
These are some of the news headlines this week. COVID has certainly impacted buying behavior, and low interest rates are fueling an active real estate market. As always, we would love to discuss any questions you have.