Existing-home sales grew for the fifth consecutive month in October to a seasonally-adjusted annual rate of 6.85 million – up 4.3% from the prior month and 26.6% from one year ago.
The median existing-home price was $313,000, almost 16% more than in October 2019. Total housing inventory declined from the prior month and one year ago to 1.42 million, enough to last 2.5 months – a record low – at the current sales pace.
More than 7 in 10 homes sold in October 2020 – 72% – were on the market for less than a month.
Regionally
Existing-home sales in the South increased 3.2% to an annual rate of 2.91 million in October, up 26.5% from the same time one year ago. The median price in the South was $272,500, a 15.7% increase from a year ago.
TheNational Association of Realtors® is America’s largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.
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.
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.
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.
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.
Existing-home sales grew for the fourth consecutive month in September to a seasonally-adjusted annual rate of 6.54 million – up 9.4% from the prior month and nearly 21% from one year ago.
The median existing-home price was $311,800, almost 15% more than in September 2019. Total housing inventory declined from the prior month and one year ago to 1.47 million, enough to last 2.7 months – a record low – at the current sales pace.
More than 7 in 10 homes sold in September 2020 – 71% – were on the market for less than a month.
Regionally
Existing-home sales in the South increased 8.5% to an annual rate of 2.80 million in September, up 22.3% from the same time one year ago. The median price in the South was $266,900, a 13.0% increase from a year ago.
TheNational Association of Realtors® is America’s largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.
Success in residential real estate depends on the team brought together to achieve a mutual clients goals. Who you choose to work with is so important. Not only for sellers and buyers but for agents as well. Agents choice in partnerships can have a big affect on a clients overall experience.
Brought To You By Fairway: Forbearance Explanation And Its Impact
Forbearance is being talked about everywhere. I wanted to give you the most current information we have on what it means and its possible implications.
What We Know:
Is it FREE? – NO
What does Forbearance mean?
That you may not have to make a mortgage payment for up to 6 months
Should someone enter into Forbearance on their mortgage?
ONLY if they’re experiencing financial hardships due to loss of employment/unforeseen circumstances
Pay as much as possible, each month, for as long as possible
Will Forbearance impact credit? – NO
Are those 6 months of payments forgiven? – NO
What happens to those 6 months of payments?
4 options:
Reinstatement – At the end of the Forbearance period all of the past payments are due in addition to the current payment
Repayment Plan – The missed payments will be divided by 12 and added to the normal monthly payments over the next year
Deferment – The missed payments are added to the balance of the existing mortgage
Modification – Due to financial hardship, the borrower has to work with their Servicer to modify the terms of their existing mortgage
Will Forbearance on an existing mortgage negatively impact clients ability to refinance or purchase a home in the future?
YES – Servicers and Lenders have already stated that they will not “buy” loans if borrowers had previously been in Forbearance
If you’re in need of good mortgage counseling, I can connect you with my partner Malcolm at Fairway. Contact Laurel directly.
