Just How Strong Is the Housing Recovery?
The residential real estate market has definitely been the shining light in this country’s current economic situation. All-time low mortgage rates coupled with a new appreciation of what a home truly means has caused the housing market to push forward through this major health crisis. Let’s look at two measures that explain the resilience of the real estate market.
The number of buyers getting a mortgage to purchase a home is a strong indicator of the strength of a housing market. Below is a graph of the week-over-week percent change in that number, as reported by the Mortgage Bankers’ Association:The number dropped dramatically in March and mid-April when the economy was shut down in response to COVID. It increased substantially from later in April through the middle of June. The strong increase in May and June was the result of the pent-up demand from earlier in the spring along with the normal business that would have been done during that time.
Since July, the market has remained consistent on a weekly basis, but still reflects a double-digit increase from the levels one year ago. The August 12 report shows a whopping 22% increase over last year.
Like purchase mortgages, pending contracts are also a powerful indicator of the strength of the real estate market. Zillow reports each week on the percent change in the number of homes going into contract. Here’s a graph of their data:The graph mirrors the one above, showing a drop in early spring followed by a strong recovery in late spring and early summer. Then, in July, it settles into a consistent level of deals. That level, like the one for purchase mortgages, is well ahead of the level seen last year. The last report revealed that pending deals were 16.9% greater than the same time last year.
Both indicators prove the housing market recovered quickly from the early setback caused by the shelter-in-home orders. They also show that Americans have realized the importance of their homes during this time and are buying more houses than they did prior to the pandemic.
Things to talk about…the economic recovery …most are saying that we will see recovery in the 2nd half of 2020
The housing market here in the Phoenix area is still very strong for both buyers and sellers
Sellers if they price their home well, will sell usually within a few weeks if not in a few days. Buyers are being offered interest rates that are at historic lows…
Here in the Phoenix Area we still have very low inventory, even with whats been going on the last few months!
Contact me so we can discuss your options!
#sylviesellsazhomes #letsputmypassionandexperiencetoworkforyou #sylviedolley #mhg #myhomegroup #realestate #realestateagent #REALTOR #realestatemarket #buyersandsellers #sellers #home #homeownership #sold #mortgage #sold #interestrates #contactme #economicrecovery #lowinventory #options #phoenix #housingmarket #buyers #buyers #homeowners #sell #soldbysylvie #fairhousingopportunities #goodyear #litchfieldpark #glendale #peoria #surprise #suncity #suncitywest #buckeye #avondale #waddell #tonopah #arlington #tolleson #helpfulrealestateagent
2020 Homebuyer Preferences [INFOGRAPHIC]
- A recent study from HarrisX shows the current health crisis isn’t slowing down today’s homebuyers.
- Many buyers are accelerating their timelines to take advantage of low mortgage rates, and staying home has enabled some to save more money to put toward a down payment.
- Let’s connect today if your needs have recently changed and you’re ready to make a move this year.
Real Estate Tops Best Investment Poll for 7th Year Running
Every year, Gallup conducts a survey of Americans to determine their choice for the best long-term investment. Respondents are asked to select real estate, stocks/mutual funds, gold, savings accounts/CDs, or bonds.
For the seventh year in a row, real estate has come out on top as the best long-term investment. Gallup explained:
“Real estate remains the most favored investment to Americans, as has been the case since 2013, when the housing market was on the rebound. More than a third of Americans have named real estate as the top investment since 2016.”
This year’s results indicated 35% of Americans chose real estate, followed by stocks at 21%. The full results covering the last decade are shown in the chart below:
The belief of the American people in the stability of housing as a long-term investment remains strong, even through the many challenges our economy faces today.
Great Home in a Great Location!
|Summers Coming! Got POOL? This amazing & well kept home shows sign of pride in homeownership from top to bottom! Home is perfect for everyday living and entertaining! Everyone will want to gather in the kitchen since it overlooks the open floor plan downstairs and is close to the pool in back yard. Upstairs you will find the loft and the 4 bedrooms. Home feels larger then square footage due to open floor plan, loft and good sized master bedroom! Granite Countertops in Kitchen,Upgraded Cabinetry through the home – Kitchen and the 2.5 Bathrooms, 2 full bathrooms upstairs and 1/2 bath down. ll appliances are included in list price.
Master Bathroom features double sinks as well separate shower and garden tub.. Master Bedroom has a good sized walk in closet. Double Sinks are also found in the Main Bathroom Upstairs. New Wood Laminate Flooring placed downstairs & tile upstairs when current owners purchased in 2013. Leased Solar Panels & all windows are tinted to help with electrical costs. Highly desirable location: close to the 303, shopping, restaurants, mountain ranges, health services and several other amenities. Home has so many possibilities! Don’t let this Great Home slip you By! Call for a showing today!