Home Value Growth Easing to Pre-Pandemic Levels
Home values nationwide are returning to 'normal' after two years of unprecedented growth, based on a new report from Zillow. Specifically, the increase in value for the typical U.S. home has been decelerating by the month, from a peak of 1.9% in April to 1.2% in May and .8% in June
These monthly adjustments may benefit homebuyers whose purchasing power is finally on the rise. That's after double-digit annual increases bumped the value of the typical home up 16% year over year – and a staggering 44.5% since 2019
Experts Offer Mortgage Rate Forecasts
Mortgage interest rates have risen dramatically over the past several months with the average 30-year fixed-rate mortgage hovering over 6%
Where are they headed next? Overall, the experts are predicting rates will stabilize in the coming months. Specifically, Freddie Mac and the Mortgage Bankers Association (MBA) forecast that rates will stay at or around 5% from late this year through the third quarter of 2023
The National Association of REALTORS® predicts rates will stabilize at about 6% over the same period. Fannie Mae is slightly more bullish and anticipates rates will dip and stay within the 4% range
The Best Time to Buy a Home? This Week...Really!
Recent data from Realtor.com found that the week of September 25-October 1 is ideal for would-be homebuyers to make their move.
Specifically, a combination of seasonal and 2022 post-pandemic market conditions, combined with up to 46% more active listings than the year's average so far, add up to some serious buyer incentives.
Although buyers who wait may (or may not) find lower home prices in the future, purchasing earlier may provide them with more choices. Those waiting for more inventory may want to act now, while those waiting for lower property prices may want to postpone for a month or two, since home prices tend to decrease in December.
This Year's Housing Market Trends
First-time homebuyers are trending
Homebuyers purchasing for the first time made up 31% of all buyers in 2021 who traded in their rental for homeownership.
Buyers see real estate as the best investment
About 42% of homebuyers believe that real estate is a better investment than stocks.
Home prices grew astronomically
Pacaso found that the cost of primary homes grew by 134% between January 2020 and January 2022 alone.
Demand for second homes took off
NAR findings revealed that demand for second homes nationwide grew by an astounding 99% between 2015 and 2020
Posted by Abuzar Waleed on
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