This week with Matthew Gardner – interesting information on historical data regarding US home ownership rates. Millennials still represent the greatest increase in home ownership in the last year.
Started in 2010, the information in the National Housing Survey contains information about consumer attitude, intentions and financial confidence as it relates specifically to housing.
This week Matthew Gardner, Windermere’s Chief Economist, looks at high frequency data sets, data that is issued more frequently than the typical monthly or quarterly reports we’re used to reading. Using data from real estate, hospitality and travel sources Matthew provides interesting information on how close our economic growth is to getting back to normal.
This week Matthew Gardner, Chief Economist with Windermere Real Estate, provides updated news about the mortgage forbearance program. The program has provided a safety net for homeowners but isn’t likely to have any long term negative economic impact.
We’re 12 weeks into more experience dealing with the impact of COVID-19 on the economy and specifically the local real estate market. After a significant market decline in new listings, buyer interest and closed sales in March and April (not at all surprising) real estate came back strong starting in early May.
- the number of pending sales is trending higher and homes are selling quickly
- more new housing inventory is coming on the market reflecting prices comparable to February prior to the COVID-19 pandemic and Washington State’s stay home/stay healthy order
- sales prices in the last two weeks are also rising with multiple offers more common and homes selling above list prices
- buyer applications for new mortgages are on the rise – interest rates are at record lows making buying a home more affordable
Matthew Gardner, Chief Economist for Windermere Real Estate provides his weekly look at the economy and specifically the real estate marketplace in our area.
It’s not surprising to know home sales declined in mid-March as we sheltered at home. Moving into mid-April both buyer activity and pending sales began increasing, all while home prices remained strong. Nationally median home prices rose in every region of the US in April.
Locally buyer activity and home values also gained momentum. Short market times and multiple offers were more common by late April, especially in affordable price ranges. Even the high end market, hit harder by the health crisis and volatile stock market, began to recover with more expensive homes coming back into the market.
What can we expect for the local condo market this summer? Over the last 30 days 131 condos in the Eastside marketplace have sold. The average time on market was just 15 days with an average sales price of $620,420. The average sale price vs. list price was 100.08% with 78 of those 131 homes selling at or over the list price. Condos currently under contract with sales pending have been on the market an average of just 14 days. As reported by the Mortgage Bankers Association and National Association of Realtors®, buyer mortgage loan applications are up for the fourth consecutive week – a strong indication buyers are back in the market and ready to take advantage of record low interest rates.
Recovery of the local economy will have an impact on the real estate market as we move toward summer. Based on buyer activity and mortgage applications, as we find our “new normal” it’s clear buyers are ready to step into home ownership. Available housing inventory is still lagging behind compared to the same time last year. It remains to be seen if there will be enough housing inventory to meet buyer demand this summer. Low inventory will certainly keep pressure on prices resulting in fewer discounts in the marketplace.
These are interesting and complex times. As the COVID-19 pandemic continues to develop, brokers are following strict recommendations from public health officials and government agencies to ensure we are helping to reduce its impact. Ensuring that agents, office staff and clients are safe and healthy is the top priority.
Real estate is still happening – homes are still being listed for sale and buyers are still purchasing those homes, exhibiting a surprising high level of interest. Matthew Gardner provides good information and perspective on the current market and the health crisis vs. the housing crisis experienced in 2008.