Buying a home has become less affordable over the past year. Home prices have surged as buyer demand outpaced the inventory of homes for sale. But while homeownership has gotten less affordable, it's still within the average Americans' financial means, according to a new report from ATTOM Data Solutions. Their fourth-quarter 2021 U.S. Home Affordability Report found that the cost of owning a median-priced home now consumes about 25 percent of the average national wage of $65,546. That's within the 28-percent … [Read more...]

The National Association of Realtors' Pending Home Sales Index tracks the number of contracts to buy homes that are signed each month. Because it tracks contract signings, not closings, it can be a good indicator of future home sales. In November, the index found pending sales down 2.2 percent from the month before. Lawrence Yun, NAR's chief economist, says home buying conditions are challenging right now but relief may be on the way. “There was less pending home sales action this time around, which I would ascribe … [Read more...]

These days, housing market conditions are fairly easy to understand. There are fewer homes for sale and, because of that, home prices continue to rise. It's simple supply and demand. When there are fewer homes for buyers to choose from, the ones that are available go for a higher price. But while that's been the case for a while now, the most recent S&P Case-Shiller Indices – considered the leading measure of U.S. home prices – offers some encouraging news. The index found that, while prices are still climbing, … [Read more...]

New-home sales surged in November, rising 12.4 percent from the month before, according to new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development. The increase pushed sales to their highest level since April. Combined with the recently reported increase in existing-home sales, the improvement is further evidence that buyer demand remains high, even at a time of year when home sales typically slow due to winter weather, fewer listings, and the holidays. But while winter usually … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates fell to a four-week low last week. Rates were down for loans backed by the Federal Housing Administration and 30-year fixed-rate mortgages with both conforming and jumbo balances. The decline helped push refinance activity up 2 percent from the week before. But while refinancing homeowners were more active, home buyers weren't. In fact, demand for loans to buy homes fell 3 percent from one week earlier. Joel Kan, … [Read more...]

In November, the typical home for sale was on the market just 18 days, according to new numbers from the National Association of Realtors. That's down from 21 days in November 2020 but unchanged from the month before. Overall, 83 percent of homes sold in less than a month. The numbers are evidence that the lack of available inventory means home buyers continue to face a challenging, fast-paced market. In fact, the NAR found there was only a 2.1-month supply of existing homes available for sale in November. A … [Read more...]

Home buyers faced a lot of competition this year. Elevated demand and fewer homes available for sale meant interested buyers had to be ready for a bidding war or risk losing a good house to a better prepared buyer. This was certainly true during the spring and summer markets. In fact, according to one measure, 74.6 percent of offers faced competition in April. Fortunately, though, that was the peak. And, as the summer market turned to fall, buyer competition began to slow. By October, the number of offers that saw … [Read more...]

Fannie Mae's Economic and Strategic Research Group releases a forecast each month covering their predictions for the economy and housing market. According to their most recent release, their outlook for full-year economic growth has been revised upward from last month's projection. Their home-sales growth projection was also revised upward based on an expected end-of-year sales surge. But while the year-end forecasts were increasingly positive, the group sees challenges ahead in 2022. For one, they expect fewer … [Read more...]

When thinking about buying a house, most of us look at home prices and mortgage rates. Together, they can provide a rough idea of how much home we can afford. They aren't, however, the only factors that determine whether or not we're ready and able to buy. One metric that isn't as commonly checked but has a significant impact is mortgage credit availability. Put simply, the standards lenders use to determine whether or not a borrower is qualified aren't fixed. That means, there are times when it's easier to qualify … [Read more...]

The National Association of Home Builders' Housing Market Index measures builder confidence in the market for newly built single-family homes. It is an important indicator of housing market health because, when builders are optimistic and building more homes, it helps balance supply and demand, gives buyers more options to choose from, and helps moderate price increases. This is especially true when the inventory of homes available for sale is low, as it has been this year. In December, the NAHB's survey – which is … [Read more...]