Millennials In The Lead for Home Purchases, More Than Half Of All Home Purchase Applications


According to the CoreLogic Loan Application Database[1], prior to 2020, while millennial home purchase applications comprised less than half of all purchase applications, their share grew from 33% in 2014 to 47% in 2019, rising about 2 to 4 percentage points per year. This annual increase is consistent with the cohort of millennials reaching 33 years of age, the peak homebuying age.

But in 2020, the share of millennials in the homebuying market soared 7 percentage points in 2020, reaching 54% of all purchase applications (Figure 1). And while half of the increase is consistent with the natural growth rate seen since 2014, the additional half of the 2020 jump was likely driven by the pandemic. In other words, the increase was accelerated by record low mortgage interest rate and flexibility to work remotely.

Figure 2 shows U.S. population distribution by age, highlighting the largest demographic cohort reaching the peak age of FTHB on the left axis. The right axis of the chart, displayed by the green line, represents first-time home-purchase loan applications per 1,000 persons in 2020.

Younger millennials below 30 have yet to enter homeownership, so demand from millennials is likely to remain strong over the coming years. At the same time, more older millennials are likely to transition to repeat homebuyers. The share of millennial repeat buyer home-purchase applications was already 35% in 2020, just 4 percentage points lower than Gen X’ share.



Happy Anniversary | How Much Is My House Worth Today?

Congratulations Kevin and Danielle! Happy Anniversary to my clients who closed on this day March 4th, 2016 in Springfield, VA.

Located in the Glenwood Manor development, the couple purchased a 1700 sqft., 3 bedroom, 2.5 bath townhome for $379,000. 5 years later, for similar properties (any three bedrooms sold in the last 365 days), the median Close Price was $478,500 and the median Days On Market was 5. 

The decision to purchase instead of renting positioned them nicely to build equity that they now can utilize for their next move.

If you have been debating owning versus renting, understanding the market and how either decision could effect you in 3-5 years is worth discussing.

  • This information is not meant to be used as an appraisal. This is a snapshot of the Glenwood Manor development listings sold in the last 365 days as of March 4, 2021.

‘Peculiar’ Economy to Stabilize in Second Half of 2021?

Leading economists say the labor, housing, and stock markets will reach crucial markers that will indicate the recovery’s progress. From NAR’s virtual Real Estate Forecast Summit, Dec. 10

Housing Market

The housing market has been a bright spot this year, though inventory is a challenge.  The problem, Berson says, isn’t just homebuilding and permitting but also getting prospective sellers to put their homes on the market. “Hopefully, people will feel good about strangers coming into their home once there’s a vaccine,” he said.  – Realtor Magazine

Click the link for more, source: ‘Peculiar’ Economy to Stabilize in Second Half of 2021?

CoreLogic – Three-Year Housing and Mortgage Outlook

  • 30-year fixed-rate loans to remain below 3% during early 2021 and average about 3.2% during the next three years.
  • Millennials will add substantial demand for housing over the next few years.
  • Home prices projected to rise in most metro areas, albeit slower than in recent years.

2020 was a truly unprecedented year. With it behind us, let’s look ahead at three housing market trends that are likely during the next three years.

Figure 1: Mortgage Rates Are Forecast to Remain Low

First, exceptionally low mortgage rates are likely to be around for an extended period. We expect 30-year fixed-rate loans to remain below 3% during early 2021 and average about 3.2% during the next three years. This would be nearly a percentage point lower than the average over the 2010-2019 decade. These low rates will provide an excellent opportunity for families with good credit to buy or refinance homes.

Figure 2: Large Demographic Tailwind Has Arrived

Second, Millennials will add substantial demand for housing over the next few years. Looking at America’s population by age, the largest numbers of Millennials are those aged 28 to 30. With 33 as the median age of recent first-time buyers, demographic forces will add an important tailwind to home-buying demand. In fact, we expect home sales relative to the housing stock, a measure of home “turnover”, in 2021 to 2023 to be above the average annual turnover rate of the prior two decades.

Figure 3: Home Price Forecast to Rise Slower than Last Decade

Third, we expect home prices to rise in most neighborhoods, albeit at a more modest pace than in recent years. Price appreciation is expected to average 2.5% per year during the next three years, compared with 4.8% per year during the prior decade. One reason for slower value growth is because we expect for-sale inventory will increase. 2020’s pandemic delayed new construction and led many prospective sellers to postpone listings. Once the coronavirus dissipates or a vaccine is widely available, we expect to see the number of new and existing homes listed for sale to rise, helping to ease price appreciation. One caveat: while we predict most communities will see gradual price growth, some metros that have been especially hard hit by the pandemic recession will likely have price declines.

Low mortgage rates, growing numbers of first-time buyers, and gradually rising home values are three housing market trends we expect during the next three years.
© 2020 CoreLogic, Inc. All rights reserved.


START TO FINISH – 406 DAYS, SO MANY GREAT THINGS HAVE COME WITH TIME AND PATIENCE

No it’s not the pandemic; there we can only follow safety precautions and hope.

Rather it’s one of my clients’ timeline to Sell and Buy during 2020. How did they go from a home of 9 yrs, with three school-aged children and two full time working parents into a new build that will suit their family for the next 20+ years during an unimaginable world wide pandemic? One step at a time.


We first connected on October 20, 2019. From there, we developed an individual step by step plan of ‘how to’ execute their real estate goals.
Following that plan led them to identifying the location, negotiating with the builder of their new home, and ratifying on Jan 1, 2020.
Coordinating with the builder, designers, lender and title resulted in closing on October 2, 2020, three months behind schedule due to pandemic related delays.

Then it was time to list their home of 9 years.

Despite being three months behind our original timeline, we referred back to the step by step plan we had created.
Without skipping a beat, my clients stuck to the plan and completed everything we had discussed to get the house ready for market.
We listed on a Thursday, ratified 5 days later on that Monday and closed in 21 days on November 30, 2020.


09.28.2020 Maryland Real Estate Trends Echos Much Of The Countries


August Housing Data Reveals a Robust Summer Market Amidst Declines in Inventory

  • Median Sale Price is up 9.7%
  • Average Sale Price up 11.2%
  • Months of Inventory down 60% to 1.4 months
  • Median days on market are down from 22 to 9
  • Seven of Maryland’s rural counties have seen over 20 percent increases in average prices over last year.
ANNAPOLIS, MD – September 28, 2020 Maryland’s August housing market demonstrated substantial recovery from spring’s COVID-related disruptions, according to housing statistics released by Maryland REALTORS®*. Data from June through August show both an increase in average and median home prices, and a decline in months of available inventory, echoing nationwide trends and sparking concern over housing imbalances.

“The average sales price increased year-over-year from $361,823 to $402,452 and the median price increased from $310,000 to $340,000, growth of 11.2 percent and 9.7 percent, respectively” said Maryland REALTORS® President John A. Harrison. “Months of inventory dropped 60 percent to just 1.4 months, compared to 3.5 last year, which is a historic low for the state. Moreover, the median days on market fell from 22 to 9 which aligns with stories we’ve heard of bidding wars and homes selling within hours of hitting the market.”

“The most notable, but unsurprising, feature of the current housing market is the sharp rise in activity in rural areas,” said Harrison. Seven of Maryland’s rural counties have seen over 20 percent increases in average prices over last year. With the rise in working from home, commute times are less of a factor. That and the relative affordability of rural areas make urban and some suburban communities less attractive. “The pandemic has prompted individuals and families to reimagine their housing requirements, often desiring home office space and more expansive outdoor living areas.”

How To Prepare For A Sellers Market

Getting a house market ready is a step by step process. It takes active participation from agent and owner(s). One of the most valuable insights an agent should bring to a seller is what to expect . Have you debated about selling? Take it one step at a time.

For Sale:
Less than 24 hours on the market, 20+ showings and counting with an owner occupied home.


3938 9th Road S, Arlington VA | #ArlingtonRealEstate
Link To Listing | Virtual Tour
Bedrooms: 3 | Full Bath: 3.5 | Sq. Feet: 1632


Real Estate Persists Being About People And The RElationships Built.

Four years ago Jacob and Amanda relocated to the DMV area for a work opportunity with every intention of going back to their home state of Michigan. Despite not knowing their timeline as to when they could go home, they knew it was better to buy versus rent. To be a a small part in their larger plan, a facilitator to the purchase of their home and now selling it, has been rewarding. Their hard work and careful planning is paying off. They are on their way home. With only three day on the market, they received an offer over list price and stand to walk away with a return on their investment.

Under Contract: 20432 Summersong Lane Germantown, MD 20874
​Link to listing | Virtual Tour Link
Bedrooms: ​2​ | Full Bath: ​3.5​ | Sq. Feet: ​1594


Pending Home Sales Notch Record-Setting 44.3% Monthly Increase in May

A Historic Rebound for the Housing Market

A Historic Rebound for the Housing Market | MyKCM

Pending Home Sales increased by 44.3% in May, registering the highest month-over-month gain in the index since the National Association of Realtors (NAR) started tracking this metric in January 2001. So, what exactly are pending home sales, and why is this rebound so important?

According to NAR, the Pending Home Sales Index (PHS) is:

“A leading indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos, and co-ops. Because a home goes under contract a month or two before it is sold, the Pending Home Sales Index generally leads Existing-Home Sales by a month or two.”

In real estate, pending home sales is a key indicator in determining the strength of the housing market. As mentioned before, it measures how many existing homes went into contract in a specific month. When a buyer goes through the steps to purchase a home, the final one is the closing. On average, that happens about two months after the contract is signed, depending on how fast or slow the process takes in each state.

Why is this rebound important?

A Historic Rebound for the Housing Market | MyKCM

With the COVID-19 pandemic and a shutdown of the economy, we saw a steep two-month decline in the number of houses that went into contract. In May, however, that number increased dramatically (See graph below):This jump means buyers are back in the market and purchasing homes right now. Lawrence Yun, Chief Economist at NAR mentioned:

“This has been a spectacular recovery for contract signings and goes to show the resiliency of American consumers and their evergreen desire for homeownership…This bounce back also speaks to how the housing sector could lead the way for a broader economic recovery.”

But in order to continue with this trend, we need more houses for sale on the market. Yun continues to say:

“More listings are continuously appearing as the economy reopens, helping with inventory choices…Still, more home construction is needed to counter the persistent underproduction of homes over the past decade.”

A Historic Rebound for the Housing Market | MyKCM

As we move through the year, we’ll see an increase in the number of houses being built. This will help combat a small portion of the inventory deficit. The lack of overall inventory, however, is still a challenge, and it is creating an opportunity for homeowners who are ready to sell. As the graph below shows, during the last 12 months, the supply of homes for sale has been decreasing year-over-year and is not keeping up with the demand from homebuyers.

Bottom Line

If you decided not to sell this spring due to the health crisis, maybe it’s time to jump back into the market while buyers are actively looking for homes. Let’s connect today to determine your best move forward.