Housing Inventory Slowly Coming Back as Frenzy Fades |
After four consecutive months of declines, existing home sales increased in June, jumping 1.4% from May to a seasonally adjusted annual rate of 5.86 million, according to the National Association of Realtors. You can thank a rise in housing inventory for the gains.
Sales climbed 22.9% year over year, up from 4.77 million in June 2020 as housing inventory has slowly improved in recent months. Total housing inventory at the end of June amounted to 1.25 million units, up 3.3% from May’s inventory and down 18.8% from one year ago. Read more from Housing Wire.
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The Great Reshuffling Is Changing How Far Americans Are Willing to Commute |
- In many expensive U.S. markets, home value growth is slowest in areas nearest to job centers, while the opposite is happening in markets where homes near downtown are typically more affordable than elsewhere in the metro.
- A 10-minute commute in New York is now $73,673 cheaper than it was in 2019, while a Detroit home with a 10-minute commute is $101,228 more expensive.
- The trends reflect Americans’ desire for larger, more-affordable homes during the pandemic.
As remote work became more commonplace during the pandemic, Americans shifted their priorities away from quick office access and towards home affordability. Home values within a short commute of the country’s biggest downtown job centers remain lofty, but are also growing more slowly than those farther out — in many areas, but not all. Read more from Zillow.
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Study: Showings Plummet After First 5 Days on Market |
The rush is on to see a house as soon as it’s listed. But after the first five days of listing a home, showings drop considerably, according to a new analysis of June home showing data from ShowingTime, a showing management and tech firm for residential real estate.
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Buyers Showing Renewed Interest in Condos |
For the second consecutive month, condos sold for, on average, above their asking price — signaling renewed homebuyer competition for condos after a pandemic-fueled slump, according to a recent study by Redfin.
The typical condo sold for 0.7% above its asking price in June, following a premium of 0.4% in May. In dollar terms, the typical condo sold for $304,000 in June. The national median sale price for condos rose a record 20.3% year over year in June to an all-time high of $304,000. Prices for single-family homes increased even more, up 26.8% to a record $405,000. Read more from Housing Wire.
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Investor Home Purchases Hit Record, Surpassing Pre-Pandemic Levels |
Real estate investors purchased 67,943 U.S. homes in the second quarter of 2021—the highest quarterly figure on record. That’s up 15.1% from the prior quarter, and up 106.7% from the second quarter of 2020, when activity in the housing market was stalled due to pandemic restrictions.
In dollar terms, investors bought a record $48.5 billion worth of homes in the second quarter, up from $38.9 billion in the prior quarter and $20.9 billion a year earlier. The typical home they purchased cost $439,600—23.7% higher than a year earlier—amid surging housing prices. Read more from Redfin.
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Homeowners Are Renting Out Their Pools for Extra Cash |
Homeowners are listing their underused private pools online to rent them out for a few hours, fueling demand for a trend the media has dubbed an “Airbnb for backyard pools.”
For example, homeowner Jim Battan, in Portland, Ore., told The Wall Street Journal that he began renting out his underused pool in September through an online platform. Since then, he has hosted 2,700 guests in less than a year and expects to have earned $111,000 by the end of the summer, The Journal reports. Read more from NAR's Realtor Magazine.
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Concerns about the Delta variant, and the overall trajectory of the pandemic, are undoubtedly affecting economic growth. While the economy continues to mend, Treasury yields have decreased, and mortgage rates have followed suit. |
We hope you enjoyed this week's Market News. For more information about how PMA can help you, please contact us. |
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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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