Warning: Undefined variable $custom_content in /home4/comcompare/public_html/mortgagenews/wp-content/plugins/code-snippets/php/snippet-ops.php(582) : eval()'d code on line 7
Last updated on February 3rd, 2021 at 10:12 am
Home sales are shooting up, is it the low rates, which has set the buyers demand?
With the COVID-19 pandemic upsetting the World economy and all the businesses, including the real estate market in the US, on Friday National Association of Realtors said that this is the 2nd continuous month where the home sales came in at an annual pace of 5.86 million homes.
The purchases of existing homes are up by 8.7% compared to last year. Record-low mortgage rates have made home-buying more affordable for buyers, and many are moving ahead to take advantage of them.
On Thursday Freddie Mac said, the average rate on a 30-year fixed-rate mortgage is now 2.99%, while it was 3.55% a year ago.
Real estate professionals say they’re seeing more people leaving high-priced city apartments and moving on to buy homes in outer suburbs.
The loss of urban amenities and concern that the risk of infection is higher in denser areas may be contributing to that trend.
Also since work from home is a culture they do not mind moving away to suburbs where they do not need to commute to work and can afford a bigger place with better amenities, compared to their existing small cramped and expensive place in the city.
According to an analysis by Zillow, it has been found, urban and suburban areas are showing similar strength. Many suburbs are becoming hot home sellers’ markets.
Jeff Tucker, an economist at Zillow said, “There is some localized evidence of a softer urban market, particularly in the highest-priced markets, San Francisco and Manhattan, and an eye-catching divergence in sale prices, but no evidence of a widespread flight to suburban pastures.
The primary issue in much of the country, is the inventory drought, both urban and suburban, that’s failing to meet the surprisingly robust demand from buyers eager to lock in record-low mortgage rates.”
With a limited supply of homes around the country, it is both helping fuel demand and keeping sales lower than they might otherwise be.
The supply of homes for sale in July was down 2.6% from June and off 21% from last year. With the current sales speed, there is a 3.1-month supply of houses — down from 3.9 months in June and the 4.2 months a year ago.
The NAR said more than two-thirds of homes sold in July had been on the market for less than a month.
Resulting in homes, which are put up for sales are vanishing quickly. Homes were on the market for an average of 22 days in July, down by two days from June.
And they are disappearing seven days faster than in the same month last year.
This low supply of homes available for purchase is raising the prices. The median price for a home has cracked the $300,000 mark for the first time on record, settling at $304,100. Which is a straight 8.5% from July 2019.
Reference Source: Wink News
