FIRST-TIME HOME BUYER SHARE ROSE TO 35% IN JUNE 2020 AS MORTGAGE RATES HIT RECORD LOWS
First-time buyers accounted for 35% of existing homes sold in June 2020, according to the latest Realtors® Confidence Index (RCI) Survey report, a report based on a monthly survey of Realtors® about their transactions during the month.1 The share of first-time buyers increased in March through June—right into the heart of the pandemic period and the surge in unemployment—and is now trending higher than the 29% to 32% average in past years since 2012. Why the rise in home buying? The major factor is, arguably, low mortgage rates. As of the week ended July 16, the 30-year fixed mortgage rate dropped to 2.98%. With rates so low that are locked in under a 30-year mortgage, the typical mortgage payment, estimated at $1,036, has fallen below the median rent, at $1,045. For potential home buyers who were thinking of purchasing a home anyway before the pandemic outbreak and who are likely to remain employed2, the low mortgage rate may be the clincher.
6 REASONS WHY THIS IS ACTUALLY THE BEST TIME IN YEARS TO SELL YOUR HOUSE
Talk about a strange summer. Between the continued threat of the novel coronavirus, a wobbly economy, and layoffs happening left and right, it's no surprise that many who may have hoped to sell their home this season are wondering whether to put those plans on hold—or they've already thrown in the towel. Such hesitancy is understandable. Yet the irony is that, after closely examining the current housing market conditions, many real estate experts believe this summer could be one of the best times to sell a home in years.
"Given the pandemic and uncertainty it's caused, the general sentiment [among some owners] is that now is not a good time to sell your home," says Danielle Hale, chief economist at realtor.com®. "Yet so far, the data suggest the opposite—that buyers outnumber sellers in the housing market, which means it's better to be a seller than a buyer.”
So if you're a home seller who assumed they should write off this summer's home-selling season as a lost cause, it's time for a reality check! Here are a few reasons why the market could actually be moving strongly in your favor.
EXPERTS WEIGH-IN ON THE REMARKABLE STRENGTH OF THE HOUSING MARKET
America has faced its share of challenges in 2020. A once-in-a-lifetime pandemic, a financial crisis leaving millions still unemployed, and an upcoming presidential election that may prove to be one of the most contentious in our nation’s history all continue to test this country in unimaginable ways. Even with all of that uncertainty, the residential real estate market continues to show great resilience. Here’s a look at what the experts have said about the housing market over the past few weeks.
Ivy Zelman, CEO of Zelman & Associates: “Whether in terms of pending contract activity or our proprietary buyer demand ratings, the various measures of demand captured in this month’s survey can only be described as shockingly strong, in spite of the resurgence in COVID-19 cases.”
Logan Mohtashami, Lead Housing Analyst at HousingWire: “Existing home sales are still down year over year by 11.3%, but as crazy as this might sound, we have a shot at getting positive year-over-year growth…We may see an existing home sales print of 5,510,000 in 2020.”
Matthew Speakman, Zillow Economist: “In a remarkable show of resilience, the housing market has stared the pandemic right in the eye and hasn’t blinked.”
Todd Teta, Chief Product Officer for ATTOM Data Solutions: “The housing market across the United States pulled something of a high-wire act in the second quarter, surging forward despite the encroaching economic headwinds resulting from the Coronavirus pandemic.”
Ali Wolf, Chief Economist of Meyers Research: “The housing recovery has been nothing short of remarkable. The expectation was that housing would be crushed. It was—for about two months—and then it came roaring back.”
Clare Trapasso, Senior News Editor of realtor.com: “Despite the crippling and ongoing coronavirus pandemic, millions out of work, a recession, a national reckoning over systemic racism, and a highly contentious presidential election just around the corner, the residential real estate market is staging an astonishing rebound.”
Bill Banfield, EVP of Capital Markets at Quicken Loans: “The pandemic has not stopped the consistent home price growth we have witnessed in recent years.”
Economic & Strategic Research Group at Fannie Mae: “Recent home purchase measures have continued to show remarkable strength, leading us to revise upward our home sales forecast, particularly over the third quarter. Similarly, we bumped up our expectations for home price growth and purchase mortgage originations.”
Mark Fleming, Chief Economist at First American: “It seems hard to deny that when one looks at many of the housing market statistics, a “V” shape is quite apparent.”
Bottom Line The experts seem to agree that residential real estate is doing remarkably well. If you’re thinking of jumping into the housing market (whether buying or selling), this may be the perfect time.
MARKET STATISTICS - SOLD DATE 07/01/2020 TO 07/31/2020
Property Category = RESIDENTIAL County = Multnomah Status = SLD Sold Date = 07/01/2020...07/31/2020 City = Portland Property Type = CONDO, DETACHD
Contact me for a full and/or customized report for your area.
One tool that is very helpful is the Altos Report that I have access to. This shows a snapshot at any time for any of these areas and zip codes. Contact Me for a report in your area.
Would you like to know what your home could sell for right now? I am happy to look at market data and current trends to come up with a Comparative Market Analysis that is customized for your home.
CLASSIC PEA SALAD
This easy green Pea Salad is an old fashioned classic recipe served cold and enjoyed all year round. Made with bacon, cheddar cheese, red onions, and a sweet dressing, all in one bowl and in only 15 minutes!
1/2 cup sour cream
1/4 cup mayonnaise
1 tablespoon granulated sugar
2 teaspoons apple cider vinegar
1/4 teaspoon kosher salt
1/8 teaspoon pepper
16 ounces (4 cups) frozen peas , thawed
1/3 cup diced red onion
3/4 cup cubed sharp cheddar cheese (approximately the same size as the peas)
8 slices bacon , cooked crispy and crumbled
Put sour cream, mayo, sugar, apple cider vinegar, salt, and pepper in a large bowl; whisk to combine.
Add peas, onion, cheese, and bacon to the bowl; gently stir to coat completely.
Refrigerate at least 1 hour before serving. Garnish with some crispy bacon.
NOTES: Any leftovers should be stored in the refrigerator in an airtight container for up to 3 days. I do not recommend freezing this salad, however. The dressing will not hold up very well, and the peas and bacon will get too mushy once thawed.
This is not intended as a solicitation if your property is currently listed with another agent. These materials contain information and articles obtained from third parties. Century 21 - Cascade or it's agent's do not endorse the recommendations of any third party nor guarantee the information provided is complete or correct.