Prices Strong Despite Lockdowns Hindering April Sales
May 21, 2020
The latest existing-home sales numbers show a housing market facing the headwinds of the COVID-19 pandemic in April. Existing-home sales fell 17.8% last month compared to March, marking a two-month decline in sales, the National Association of REALTORS® reported Thursday.
Still, home prices remain resilient in the face of the pandemic. The median existing-home price for all housing types in April jumped 7.4% compared to a year ago ($286,800). All four major regions of the U.S. saw annual gains in home prices, too.
But total existing-home sales—which are completed transactions that include single-family homes, townhomes, condos, and co-ops—fell to a seasonally adjusted annual rate of 4.33 million in April. Sales were down 17.2% compared to a year ago (5.23 million existing-home sales in April 2019). Existing-home sales are at the lowest level since July 2010
“The economic lockdowns—occurring from mid-March through April in most states—have temporarily disrupted home sales,” says Lawrence Yun, NAR’s chief economist. “But the listings that are on the market are still attracting buyers and boosting home prices.”
Record low mortgage rates likely will be a key factor in driving housing demand as state economies gradually reopen, Yun adds. “Still, more listings and increased home construction will be needed to tame price growth,” he notes.
Here is an overview of additional key indicators from NAR’s latest housing report:
Inventory: Total housing inventory at the end of April was 1.47 million units, down 19.7% from a year ago. Unsold inventory is currently at a 4.1-month supply at the current sales pace.
Days on the market: Properties typically stayed on the market for 27 days in April, up from 24 days a year ago. Fifty-six percent of homes sold in April were on the market for less than a month.
First-time home buyers: More sales last month were from buyers who were purchasing their first home. First-time buyers accounted for 36% of sales in April, up from 32% a year ago.
All-cash sales: All-cash sales comprised 15% of transactions in April, down from 20% a year ago. Individual investors and second-home buyers, who make up the biggest bulk of cash sales, purchased 10% of homes in April, down from 16% in April 2019.
Distressed sales: Foreclosures and short sales represented 3% of sales in April, which is about the same as a year ago.
Regional Breakdown
The following is a closer look at how existing-home sales fared across the country in April:
Northeast: Existing-home sales dropped 16.9% in April to an annual rate of 540,000—an 18.2% decrease compared to a year ago. Median price: $312,500, up 8.7% from April 2019.
Midwest: Existing-home sales fell 12% to an annual rate of 1.10 million—an 8.3% decrease compared to a year ago. Median price: $229,200, a 9.3% increase compared to April 2019.
South: Existing-home sales dropped 17.9% to an annual rate of 1.88 million in April, down 16.8% from the same time a year ago. Median price: $249,400, a 6.4% increase compared to April 2019.
West: Existing-home sales dropped 25% to an annual rate of 810,000 in April—a 27% decrease compared to April 2019. Median price: $419,300, up 6.1% from a year ago.
Original article found atRealtor
5 Trends You’ll Notice Among Sellers and Buyers
Who are selling and buying these days?
Home buyers are ready to plant roots: Today’s buyers are young, multicultural, tech-savvy, and eager to buy a home as a personal investment, according to the National Association of REALTORS®’ 2019 Profile of Home Buyers and Sellers. Sellers, on the other hand, are already rooted, having lived in their current home an average of 10 years, NAR’s report shows. Sellers are equity-rich and rely on real estate professionals for guidance now more than ever before.
Five key themes emerged from NAR’s annual survey of recent home buyers and sellers, ranging from what buyers are looking for in a house to what both buyers and sellers expect from a real estate agent. NAR has been providing an in-depth analysis of home buyers and sellers since 1981. This year’s report is based on surveys of more than 5,800 consumers.
Buyers, sellers turn to agents in record numbers. The internet hasn’t replaced real estate professionals. Eighty-nine percent of buyers—a record high for the report—say they used an agent to purchase a home. On the seller side, the share of For Sale by Owner transactions hovers at 8%, on par with recent years. “While the home search process has shifted toward digital technology, the need for a trusted real estate agent to help sell a home is still paramount,” NAR notes in its report. “Personal relationships and connections remained the most important feature of the agent-buyer/seller bond.”
Unmarried buyers are on the rise. Young adults ages 25 to 34 make up a quarter of all home buyers, the largest share. Meanwhile, first-time buyers are getting older: The median age of this cohort rose to 33—the highest on record in the NAR survey. The median age of first-time buyers in 1981 was 29. While most people who buy together still wait for marriage, unmarried buyers make up a growing share of the market, 9% compared with 8% a year ago. Married buyers made up 61% of the market. That’s down from 73% in 1981. Single female buyers made up 17% of the market, while the share of single male buyers was 9%.
Debt remains a hurdle to saving for a down payment. More than a quarter of buyers—28%—say they delayed their home purchase because of debt. The median amount of time homeowners spent saving for a down payment was four years, according to NAR’s survey. Many buyers cited saving for a down payment as the most difficult step in the homebuying process, indicating that student loans, credit card debt, and car loans diminished their purchasing power. The median down payment on a home purchase is 12% for all buyers. Broken out, the median down payment is 6% for first-time buyers and 16% for repeat buyers, according the report.
Equity gains prove a boon to sellers. Higher home prices have translated into faster appreciation for homeowners. Sellers this year sold their homes for a median of $60,000 more than they paid at the time of purchase, up from $55,500 a year ago, NAR’s survey shows. Sellers who owned their home for six to seven years reported a median $72,200 gain, while those who sold after 21 years of ownership saw a median gain of $162,000.
Inventory woes continue. “Due to suppressed inventory levels in many areas of the country, buyers are typically purchasing more expensive homes as prices increase,” the NAR report notes. The average number of weeks a buyer searched for a home was 10 weeks. New-home construction has failed to catch up to buyer demand, with the share of new-home sales falling to an all-time low of 13%, NAR reports. For comparison, new-home sales held steady at 16% from 2011 to 2015. Existing-home sales have edged up from 86% of the market last year to 87% this year. In 1981, new-home purchases comprised 18% of the market, while existing-home purchases made up 82%.
Article found in Realtor Magazine
'Tis the Season To Sell! Why You Should Keep Your Home On the Market
Happy Thanksgiving HWMY Readers,
Here’s a dilemma faced by many sellers right now: do I continue to sell or pull my home off the market until after the holidays? Well here are six reasons why you should keep your home listed and why this time for selling can actually be ideal!
#1 When people pull their listing now, yours automatically rises to the top! And that means less competition and more buyers to see your home.
#2 What DO the holidays smell like? Well pies, cakes, yummy dinners and all the fixings of course! On top of all the decorations, believer it or not, homes actually show better during this time of the year because of the holiday cheer. And why wouldn’t those warm and fuzzy feeling translate to an easy escrow?
#3 Because of the holidays, buyers tend to be very serious and want quicker escrows. This makes sense, why not enjoy the gift of your new home for the holidays?
#4 And on that note, kids are out of school during this time which makes it a lot easier for families, both from and out-of-town, to look at homes together. Decisions are made faster if all family members are present and that means a faster sell for you!
#5 Since volume trends lower during December, that can translate to a faster escrow too. Title and escrow officers are celebrating and waiting for your escrow to keep them busy. So let’s not disappoint them.
#6 Lastly if your home hasn’t sold before the holidays, take this time to adjust your marketing plan to sell now. Taking fresh approach and updating your plan can make your property trend again, getting a second wind so to speak. This can make the difference between your home sitting and selling.
So if you are on the fence about whether to sell or hold off, I hope these points help you make the best decision for you and your family. And remember, To Sell or Buy, ALWAYS Call Homes With MY (619) 887 - 4969 (HWMY)!
Yours Truly, MY
This article was originally titled, “'Tis the Season (to Sell): 6 Reasons You Shouldn’t Take Your Home Off the Market for the Holidays,”and written by Wendy Helfenbaum on 11/14/18.
Show Me The Money!
Hi HWMY Readers!
It’s been awhile since Jerry Maguire screamed, “Show Me the Money!” just like it’s been awhile since we’ve seen record growths in home equity. Look at some of the ways homeowners are tapping into their equity. And remember, “To Sell or Buy, ALWAYS Call Homes With MY 619-887-4969 (HWMY)!”
Yours Truly, MY
Are You Winning the Race?
Hi HWMY Readers!
If your agent is working hard for you, then they would insist on you having financing in place before showing the very first home to you. Why? What happens if you fall in love with a home you’ve just seen but someone else is there who is preapproved and loves the house too. Guess who wins the bid? Let’s win together! To Sell or Buy, ALWAYS Call Homes With MY 619-887-4969 (HWMY)!
Yours Truly, MY
Latest Trend: Smart Home Tech
Hi HWMY Readers!
Yesterday’s smart homes with the USB outlets and energy efficient appliances is so passe. Take a peek below to see this new type of smart home where you can almost enter without touching anything. Remember, to Sell or Buy, ALWAYS Call Homes With MY 619-887-4969 (HWMY)!
Yours Truly, MY
Signs It's Time to Sell!
Hi HWMY Readers!
Do you know the signs that it is time to sell? Take a quick look below are the reasons why and when it is time to sell. And remember, To Sell or Buy, ALWAYS Call Homes With MY 619-887-4969 (HWMY)!
Yours Truly, MY
Are You Ready to Qualify For a Mortgage
Hi HWMY Readers!
Are you ready to qualify for a mortgage? Below are five essential steps needed for a mortgage. Let me know if you are ready to speak to a lender. I have a excellent referrals of top lenders. And remember, to Sell or Buy, ALWAYS Call Homes With MY (619) 887-4969 (HWMY)!
Yours Truly, MY
Down Payment Dilemma
Hi HWMY Readers!
Do you think you have to have 20% down to buy your home? Think again! Below are some of the unique ways to overcome the challenge of the down payment dilemma. Remember, to Sell or Buy, ALWAYS Call Homes with MY 619-887-4969 (HWMY)!
Yours Truly, MY
What Makes the American Dream Home?
Hello HWMY Readers!
Do you know what makes the American Dream Home? Well, we asked a few millennials what they thought and the answer will surprise you! Read below and find out what they think. And remember, to Sell or Buy, ALWAYS Call Homes With MY 619-887-4969 (HWMY)!
Yours Truly, MY
Are Your Pets Protected?
Hello HWMY Readers!
When preparing for an emergency, are your little ones protected? Not just our upright walking family members, but our four-legged ones too. Take a quick look at the ways to make sure you and your family stay protected! And remember, to Sell or Buy, ALWAYS call Homes With MY 619-887-4969 (HWMY)!
Yours Truly, MY
