Some Positive News About the Market

Market experts held their breath for June’s results; here are the stats.

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The overall economy is starting to improve, and the housing market is doing better than other industries. CNBC’s Diana Olik recently said, “New home sales rose slightly in April, defying expectations for a huge 22% drop.” She continued: “Mortgage demand from home buyers shows unexpectedly strong and quick recovery… The quick recovery has surprised most forecasters.”

Furthermore, interest rates remain low, meaning you’ll be able to get more house for your money. To carry this wave of good news even a step further, Mark Fleming, chief economist for First American, said, “April really was the trough, I think, for the housing market. We do expect the rebound to be quite strong in the May numbers that will come out at the end of June.”

Home prices are being driven upward by the incredibly low supply of homes across the nation.

Well, now’s the time to cross-reference Fleming’s prediction with our actual market stats; I’m happy to report that both May and June were strong months for the housing market. Six leading experts project solid appreciation through 2022 (check out 2:00 in the video above to see a chart on appreciation). Home prices are being driven upward by the incredibly low supply of homes across the nation, which is hovering around four months’ worth of inventory right now.

According to Zillow’s June 2020 report, new pending sales are up 24.5% month over month, and new listings taken are up 19.3%. This is certainly an improvement, but we have more distance to cover. Here’s an excerpt from that report: “Both pending sales and new listings remain well up from the previous month when the market was bouncing back from a slowdown in the early days of the coronavirus pandemic.”

Mortgage activity is up thanks to low rates, the whole housing market is climbing, and monster levels of demand are running up against very low supply to keep prices up. All in all, we have a lot of positive news on our hands.

If you need any help buying or selling real estate, or if you just have questions you’d like answered, don’t hesitate to reach out to me by phone or email.