Aug 7, 2020
This is the largest monthly gain since the Realtors began tracking the data in 1968.
“The housing market is hot, red hot, based on the data and the anecdotal prevalence of multiple offers,” said Lawrence Yun, chief economist for the Realtors “The urban area is less hot. We are clearly seeing trends for smaller towns or suburbs.”
Home sales could have been more robust, had there simply been more homes for sale. The supply of existing homes available fell a remarkable 18.2% annually to just 1.57 million homes for sale at the end of June. Based on the current sales pace, that represents a four-month supply. Last June 350,000 more homes were on the market.
Much of the gains are likely from pent-up spring demand, but there are signs that it will continue at least through the summer. Mortgage applications to purchase a home were up 19% annually just last week, according to the Mortgage Bankers Association.
First-time buyers are also gaining strength, making up 35% of June buyers. That figure had been as low as 30% in recent months.
Consumers are taking advantage of record-low mortgage rates resulting from the Federal Reserve’s maximum liquidity monetary policy.
According to the National Association of Realtors, sales rose 16.6% currently at 116.1 in June 2020, making this its highest level since 2006. This is the second month in a row we have something to cheer about. In May, the number of Americans signing contracts to buy homes rebounded a record 44.3% after plunging during the usually busy spring season as buyers and sellers were sidelined by coronavirus-related closures and regulations.
What is especially remarkable is that contract signings are 6.3% ahead of where they were last year, even with the lingering pandemic. after being significantly behind last year’s pace due to the pandemic.
The Northeast, where COVID first made it's mark on the population, showed the biggest increase, with a 54.4% increase. Sales in the Midwest, South and West all jumped around 12%.
Freddie Mac reported last week that average interest rates on a 30-year fixed rate mortgage rose to 3.01%. Yet the week before, rates had been 2.98%, the first time in 50 years that it slipped below 3%. The Federal Reserve wraps up a two-day meeting Wednesday and is not expected to change its main borrowing rate.
Now is the perfect time to discuss home ownership for many Americans seeking stability during this uncertain time. If you are in a position to take advantage of the record low interest rates currently available, please contact me. I look forward to talking with you! #tracycurtis #marinrealestate #coldwellbankerrealty #home #marincounty