2021

article thumbnail

Will the housing market continue its hot streak in 2022?

Housing Wire

As we approach the end of another hot year for the market, homebuyers and sellers are eagerly looking ahead to the 2022 housing market. Will the market continue its streak of strong growth, or are we finally about to see a slow down? Here’s a high-level forecast for what to expect next year, based on the supply and demand signals we can already see in today’s data.

article thumbnail

Logan Mohtashami: The 2022 housing forecast

Housing Wire

Most of the time, the economy is like a slow-moving ocean liner that changes direction gradually and without much effort. But when a new, powerful variable presents itself, like the worldwide COVID-19 pandemic, the economy can change on a dime. COVID was a veritable iceberg for our ocean liner economy, but the ship did not go down! Even in the extreme conditions of COVID-19, my general premise on housing economics predicted that the two variables with the most influence — demographics and mortga

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Single-family rents soar in tight housing market

Housing Wire

You could buy a top-of-the-line laptop and a new cell phone to match, or you could pay one month’s rent for a single-family home in Los Angeles. It’s not much better for prospective single-family renters across California, a study by HouseCanary found. In Ventura or Carlsbad, median single-family rents are $4,250, and in Santa Clara and Berkeley, median single-family rents reached $4,225 and $4,200, respectively.

article thumbnail

Mortgage rates move slowly despite tightening market

Housing Wire

Mortgage rates decreased one basis point to 3.10% in the week ending Dec. 9, remaining low and stable despite tighter housing supply and affordability, according to the latest Freddie Mac PMMS mortgage report. A year ago at this time, the average 30-year fixed-rate loan averaged just 2.71%, according to the report published on Thursday. Sam Khater, Freddie Mac’s chief economist, said in a statement that rates have moved sideways over the last several weeks, fluctuating within a narrow range.

Mortgage 502
article thumbnail

Investors are buying more, but spending less

Housing Wire

Real estate investors are buying more properties, but paying less for them, according to a report from RealtyTrac released Thursday based on ATTOM Data Solutions home sales data. In the second quarter of 2021, investor purchases accounted for 15.4% of all home purchases nationwide, compared with 11.5% of all home purchases a year prior. Despite such a large year-over-year change, it is still slightly lower than Q1 2021 , in which investors held 15.9% of the market.

Investors 545
article thumbnail

Top markets for affordable renovated housing inventory

Housing Wire

Skyrocketing U.S. home prices are quickly shifting the affordability calculus for prospective homebuyers in 2021 — even though mortgage rates have remained near record lows. The median home price nationwide in August increased 14.9% from a year ago to $356,700, according to the National Association of Realtors. August marked the sixth consecutive month where median home prices increased by double-digit percentages from a year ago.

More Trending

article thumbnail

Should You Buy a Home or Keep Renting? How To Decide in 7 Steps

Realtor

marchmeena29/Getty Images It’s a big question with no easy answer: Should you keep renting, or is it time to think about buying a home? One of the major benefits of being a homeowner is building equity with each mortgage payment, instead of putting money into your landlord’s pocket. But that doesn’t mean buying is always the best choice—as a renter, you enjoy more flexibility and avoid many of the costs that come with homeownership.

article thumbnail

The Pandemic Is Making It Difficult for Mom-and-Pop Landlords to Maintain Their Properties

Urban

Assistance could be a lifeline for many tenants and landlords, providing vital funding for much-needed preservation of their homes and properties.

Landlords 207
article thumbnail

How to Challenge a Low Appraisal—And Win a High Valuation

BiggerPockets

Your ability to qualify for a mortgage hinges on your home appraisal—so how can you maximize your home's value? Here, learn how to challenge a low appraisal and get the highest valuation possible.

article thumbnail

Can home buyers avoid the mortgage stress test?

Mortgagebroker News

OSFI mandates banks to enforce the stress test, but there may be a way to side-step the process

Buyers 93
article thumbnail

Waiting for a big drop in home prices? It could be a while

Housing Wire

With mortgage rates falling during the COVID-19 crisis, many households were able to refinance to lower payments. Because a mortgage payment is almost always the most prominent payment households make each month, lower payments have allowed homeowners who bought homes to have better cash flow over the last few years. This means mortgage holders who have refinanced their homes to lower payments while their wages have also grown look great on paper.

article thumbnail

Study: 24% of sellers received four or more offers in 2021

Housing Wire

Nearly one quarter of U.S. home sellers received four or more offers on their home in 2021, according to Zillow’s latest consumer housing trends report. The rise in the number of homes that received multiple offers is reflected in the increased frequency of bidding wars in 2021. Typical sellers received two offers, which is the same as the past three years.

Sellers 545
article thumbnail

Housing affordability improves for second straight month

Housing Wire

For the second month in a row, national housing affordability improved in August, according to the latest National Association of Realtors housing affordability index report. This improvement came as monthly mortgage payments fell by 1.1% while median family income fell by 0.7%. As of August 2021, the 30-year fixed mortgage rate was 2.89% compared to 3% a year prior.

Realtors 545
article thumbnail

Homeowners gain $2.9 trillion in equity in Q2 2021

Housing Wire

Homeowners with mortgages gained $2.9 trillion in equity in the second quarter of 2021, a 29.3% year-over-year increase, according to a new report by CoreLogic released Wednesday. This marks an average gain of $51,500(!) per borrower since the second quarter of 2020. The amount of equity for a property is determined by comparting the estimated current value of the property against the mortgage debt outstanding (MDO).

article thumbnail

Homebuyers flock to Florida real estate

Housing Wire

The Sunshine State seems to be getting a lot more foot traffic these days, with the number of homebuyers moving to Miami tripling year-over-year, a new analysis found. According to Redfin ’s monthly migration report, July saw the net inflow of Redfin users packing their bags and moving to Miami rise to 7,610, up from 2,216 last year. Milagros Alvarez, a Miami real estate agent at Redfin, said that the pandemic “has brought even more out-of-towners to the area” because so many people can no

article thumbnail

Here’s where the oldest and youngest homeowners live

Housing Wire

Have you ever considered the median age of homeowners in your area? According to a study conducted by LendingTree, homeowners gravitate towards specific parts of the country depending on their age. Millennial buyers, for instance, are more prominent in Colorado while older buyers are more likely to put down roots in Ohio. . These are the places with the oldest average homeowners: 1.

Buyers 545
article thumbnail

This is not 2008 all over again for the housing market

Housing Wire

When you hear people say that the current housing market is like 2008 all over again, you may want to remind them of the huge differences between this market and that one. The previous economic expansion, from 2010-2019, wasn’t a housing bubble. Quite the opposite: In that cycle we had the weakest housing recovery ever, even with the lowest mortgage rates during the longest economic expansion ever.

article thumbnail

The homebuyer journey is changing – So should you

Housing Wire

The 2021 RealTrends Gathering of Eagles real estate conference captured our attention when the role and future of the real estate transaction process for a homebuyer were lively debated. Big players such as Zillow, Redfin, Compass… etc. claim dominance. We examine the need for complete vendor-provided software solutions vs. building in-house. We watch as consolidation transpires all-around.

Brokerage 545
article thumbnail

End of forbearance programs won’t result in housing crash

Housing Wire

One year ago this month, I coined the term forbearance crash bros , an updated name for the housing bubble boys who never got their housing crash in 2020 so they moved the collapse of housing to 2021. Many other articles were written in tribute to this wonderfully talented group of internet crash callers. As we are in September 2021, we can safely say the housing crash has been moved once again to next year.

Contracts 544
article thumbnail

Cash buyers are scooping up homes like mad

Housing Wire

Cash buyers are pouring into the housing market this year, and they’re picking off more than half of available inventory in certain areas in Florida and New York. As of July 14, nearly one-third of U.S. home purchases this year were paid with just cash — 30%, specifically — according to a recent Redfin study. That represents the largest share since 2014, when 30.6% of homes were purchased with all cash.

Buyers 545
article thumbnail

Home sales are beginning to stall as buyers hit their limit

Housing Wire

Home sales fell 1.2% from May to June, the largest drop at this time of year on record since at least 2012, according to a new Redfin study released this week. The national median home-sale price hit a record high of $386,888, up 25% year over year, but a slight decline from the record of 26% in May. The number of homes for sale fell 28% year over year from 2020, and the typical home sold in just 14 days — a record low and, down from 39 days in June 2020.

Buyers 545
article thumbnail

Selling your home? Make sure you’re aware of hidden costs

Housing Wire

It’s no secret that buying a home takes time and money. Well, it turns out, so does selling a home. According to Zillow and Thumbtack’s Hidden Costs of Selling Analysis , the average homeowner spends over $15,000 in “hidden costs” to sell their home. . While a real estate agent’s commission is one of the most expensive costs, it definitely isn’t the only one.

Sellers 545
article thumbnail

Why we can’t build our way out of this hot housing market

Housing Wire

During the previous economic expansion from 2008 to 2019, the housing market was subject to the constant refrain of build more homes. Building more homes, it was said, would solve all sorts of social problems, from making homeownership more affordable to ending homelessness. Today we are perhaps less prone to believing that a glut of new homes is the panacea society is waiting for, but the siren call to build more homes continues to be broadcast by a host of housing pundits and social do-gooders

article thumbnail

Should you buy a home in a super-hot housing market?

Housing Wire

The world has been dealing with a significant health crisis since the beginning of 2020. This has provided the American bear troll crowd numerous opportunities to pontificate about a likely long-lasting depression. If you bought into the theories being peddled by this crash-cult crowd (who, by the way, have been infecting the discourse of economics since the creation of social media and YouTube channels) then you would have believed that the second housing market bubble crash was imminent during

article thumbnail

UWM goes on the offensive with price-match guarantee

Housing Wire

United Wholesale Mortgage has been aggressively price-cutting loans to put pressure on competitors for months now. It appears they’ve just thrown gas on the fire in the hopes of boosting their second quarter numbers, while hitting their rivals ahead of earnings call season. UWM said on Monday that they’ll price-match any conventional loan on primary residences up to 35 basis points with that of 15 different competitors: Caliber Home Loans , Cardinal Financial , Citizens Bank , Financ

Mortgage 545
article thumbnail

Navigating appraisal challenges in today’s housing market

Housing Wire

The booming real estate market has created a high demand for appraisal services. This is good news for lenders, but it puts a tremendous amount of pressure on appraisers who have to be diligent in their work, while also meeting closing dates. HousingWire recently spoke with PCV Murcor Founder, President and CEO Keith Murray and COO Cindy Nasser on how the appraisal process can be streamlined in today’s tight housing market. .

article thumbnail

Millions will enter housing market in 2021: Zillow

Housing Wire

In what will be known to future generations as the Great Reshuffling, a recent Zillow survey showed that more than 1 in 10 Americans reported moving in the past 12 months, either by choice or by circumstance. And now, with the COVID-19 vaccine circulating and the economy slowly regaining strength, Zillow researchers say millions of additional households could enter the housing market in 2021.

article thumbnail

For housing, look at bonds over MBS or federal debt

Housing Wire

This is the first time I am writing about mortgage backed securities (MBS) because I hardly ever consider this aspect of the housing ecosystem in my work. But since now even Federal Reserve members are discussing the pros and cons of MBS, this is a good time to give you my take. The 10-year yield has been in a downtrend since 1981, and so have mortgage rates, so the MBS market hasn’t eve been a focus of mine.

article thumbnail

For the first time since July, mortgage rates pass 3%

Housing Wire

The average mortgage rate for a 30-year fixed loan rose 5 basis points last week to 3.02%, marking the first time since July that the industry has seen rates break above 3%, according to Freddie Mac ’s Primary Mortgage Market Survey. Since reaching a low point in January, mortgage rates have risen by more than 30 basis points as the economy works to recover, and according to Sam Khater, Freddie Mac’s chief economist, the impact on purchase demand has been noticeable.

Mortgage 545
article thumbnail

Generation X is looking to move to these metros

Housing Wire

In the last few years, there’s been a lot of conversation surrounding 25 to 40-year-olds and their home purchasing habits. But according to a new LendingTree study , millennials aren’t the only ones making big purchases – Generation X is doing the same. Generation Xers are taking advantage of the housing boom. Generation Xers were born between 1965-1980 and range between 41 to 56-years-old.

article thumbnail

CFPB proposes foreclosure ban until 2022

Housing Wire

The Consumer Financial Protection Bureau (CFPB) released a notice of proposed rulemaking on Monday that would amend Regulation X to provide a special pre-foreclosure review period prohibiting servicers from starting foreclosures until after December 31, 2021. Under current CFPB foreclosure rules, a borrower must be 120 days delinquent before the foreclosure process can start.

Tools 544
article thumbnail

How much cash matters in a bidding war

Housing Wire

When there’s a bidding war, cash is king. And a recent Redfin study confirmed that it’s the only sure-fire way to win that dream house in a market this crazy. Homebuyers who offer all-cash improve their chances of winning a bidding war by 290%, per Redfin’s study of clients buying homes between June 2020 and February 2021. And waiving the financing contingency is the second-most effective bidding-war strategy, Redfin officials said – improving homebuyers’ odds of wi

article thumbnail

Biden signs American Rescue Plan. Here’s what that means

Housing Wire

President Joe Biden signed the American Rescue Plan Thursday, freeing up $1.9 trillion aimed at invigorating the economy following the COVID-19 pandemic. The bill will send $1,400 direct payments to individuals making up to $75,000 annually, and allocates $350 billion in aid to state and local governments and $14 billion for vaccine distribution. Over $50 billion will be distributed to small businesses — including $7 billion for the Paycheck Protection Program — and $25 billion for small and mid

Tenants 545
article thumbnail

Mortgage rates jump to 2.81%

Housing Wire

After three weeks of unchanged rates, the average mortgage rate for a 30-year fixed loan jumped 8 basis points to 2.81%, reaching its highest point since mid-November, according to Freddie Mac ’s Primary Mortgage Market Survey. While economic spending has improved, due to the most recent stimulus, supply chain shortages are causing downstream inflation, leading to higher mortgage rates, said Sam Khater, Freddie Mac’s chief economist. “While there are multiple temporary factors drivin

Mortgage 545