The "Great Reshuffling" Continues: Millions More Will Enter Housing Market in 2021 According to Zillow
As pandemic dust slowly lifts, even more Americans could flock to secondary cities
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In what will be known to future generations as the Great Reshuffling, a recent Zillow survey showed that more than 1 in 10 Americans reported moving in the past 12 months, either by choice or by circumstance. And now, with the COVID-19 vaccine circulating and the economy slowly regaining strength, Zillow researchers say millions of additional households could enter the housing market in 2021.
Among the surveyed movers, approximately 75% reported moving for positive reasons, such as being closer to family or friends or living in a desired part of the country. That’s a major cause of the Great Reshuffling, as work-from-home became a national norm during the pandemic and allowed people to live wherever they wanted – so long as they had an internet connection. Read more from Housing Wire.
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People Are Finally Starting to Think About Selling Homes Instead of Just Buying Them |
Consumer attitudes perked up in March, sending the Fannie Mae Home Purchase Sentiment Index (HPSI) up 5.2 points compared to February. The company said four of the HPSI's components rose during the month, taking the index to 81.7.
The percentage of respondents who say it is a good time to buy a home rose to 53 percent from 48 percent and there was a 3 point decline in those who viewed the timing as bad. This left a net of 13 points, an increase of 8 points for the month but 7 points below the level a year earlier.
Attitudes about selling a home increased even more. Sixty-one percent said it was a good time, up from 55 percent in February while the percentage who say it's a bad time dropped from 35 percent to 28 percent. As a result, the net share of those saying it is a good time to sell increased 13 percentage points month-over-month and 17 percent since March 2020. Read more from Mortgage News Daily.
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Despite Pandemic, Homeowners View Housing as a Good Investment |
Fannie Mae says results from its fourth quarter 2020 National Housing Survey show that consumers continue to view homeownership as a good investment. Respondents were asked about various investment types, including stocks, bonds, homes, and savings accounts. Seventy-five percent of respondents indicated that homes are a "safe" investment, ranking just slightly below a savings/money market account. Additionally, 73 percent of consumers felt that investing in a home has "a lot of potential." Only 63 percent felt that way about owning stocks. Read more from Mortgage News Daily.
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Realtors Say Staging a Home Increased Offered Prices, Cut Marketing Time |
Does staging really work? That was among the home buying and selling topics covered in a new survey from the National Association of Realtors® (NAR) and the answer appears to be "yes."
Eight-two percent of buyers' agents said home staging made it easier for a buyer to visualize the property as a future home. Staging also appears to increase how much buyers were willing to spend for a property. Twenty-three percent of buyers' agents said that home staging raised the dollar value offered between 1 percent and 5 percent compared to similar homes on the market that hadn't been staged. Read more from Mortgage News Daily.
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Work From (Second) Home: Demand for Vacation Homes Continues to Soar, Even as Offices Show Signs of Life
The intense demand for vacation homes is a symbol of the ongoing uneven economic recovery in the U.S., with some Americans able to afford second homes and many unable to afford even one.
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The number of buyers who locked in mortgage rates for second homes shot up a record 128% year over year in March. That marks the 10th straight month of 80%-plus annual growth. The year-over-year increase should be taken in context because demand for second homes was relatively weak in March 2020, when the coronavirus pandemic first hit the U.S. and real estate activity in many parts of the country temporarily halted with lockdowns. Read more from Redfin.
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Pending home sales dipped for a second straight month in February, the National Association of REALTORS® reported Wednesday. Each of the four major U.S. regions witnessed month-over-month declines last month, while results were mixed in the four regions year-over-year.
The declines come not from a cooling market, but from a red-hot one in which inventory is scarce. “The demand for a home purchase is widespread, multiple offers are prevalent, and days-on-market are swift, but contracts are not clicking due to record-low inventory,” says NAR Chief Economist Lawrence Yun. Read more from NAR's Realtor Magazine.
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6 Spring Maintenance Tasks You Shouldn't Procrastinate On |
Ah, the telltale signs of spring: trees in bloom, slightly warmer weather, allergies flaring—and a long list of chores to tackle around the house.
Before you pause to savor the sunnier days, it’s important to make sure your home is ready for the season. Here’s what experts say you need to include on your spring home maintenance checklist. Read more from Realtor.com.
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After moving up for seven consecutive weeks, mortgage rates have dropped due to the recent, modest decline of U.S. Treasury yields. As the economy recovers, it should experience a strong rebound in the labor market. Combined, these positive signals will continue to bolster purchase demand. The drop in rates creates yet another opportunity for those who have not refinanced to take a look at the possibility. |
We hope you enjoyed this week's Market News. For more information about how PMA can help you, please contact us. |
phone: 610.834.8700
Information and analysis is obtained through third parties and is deemed accurate but not guaranteed. Philadelphia Mortgage Advisors is a licensed mortgage lender by the PA Dept. of Banking and Securities, NJ Dept. of Banking & Insurance, the state of DE, the Florida Office of Financial Regulation, MD Mortgage Lender #23004 and VA State Corporation Commission #MC - 6797. NMLS #128570.
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