New numbers from the U.S. Census Bureau and the Department of Housing and Urban Development show sales of newly built single-family homes fell 6.6 percent in June from the month before. The decline was unexpected. In fact, economists polled before the report's release forecast a 3 percent increase from May's number. So what happened? Well, high home prices and the rising cost of building materials may have something to do with it. The median sales price of new homes sold during the month was $361,800. The average … [Read more...]

There's a reason living near a major metropolis has traditionally been more expensive than living further away. Put simply, it's where the jobs are. And, if you work in the city, you likely aren't going to want to live so far away that you have a two-hour commute there and back. Naturally, though, the pandemic has changed things. With more Americans able to work remotely, home buyers have a different set of priorities than they did even a few years ago. For example, a recent analysis of commute times and home … [Read more...]

Sales of previously owned homes increased 1.4 percent in June, according to new numbers from the National Association of Realtors. The month-over-month improvement pushed home sales 22.9 percent higher than they were last year at the same time. Lawrence Yun, NAR's chief economist, says the number of available listings has improved and it's helping home sales. “Supply has modestly improved in recent months due to more housing starts and existing homeowners listing their homes, all of which has resulted in an uptick … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates were mostly down last week, with decreases seen for 30-year fixed-rate mortgages with jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Rates for 30-year mortgages with conforming loan balances rose slightly from the week before. Joel Kan, MBA's associate vice president of economic and industry forecasting, says mortgage rates are being affected by coronavirus concerns. … [Read more...]

Today's housing market is short of available homes but not interested buyers. That's why home prices and competition have been rising. It's also why industry experts have been focused on the number of new homes being built. The best way to solve a supply shortage, after all, is to add supply. So new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development are good news for home shoppers. The data shows that the number of new homes that began construction in June was 6.3 percent higher … [Read more...]

The National Association of Home Builders surveys builders each month to gauge their confidence in the market for newly built single-family homes. Their responses are scored on a scale where any number above 50 indicates more builders view conditions as good than poor. In July, the index fell one point to 80. The decline was due to the continuing supply challenges facing home builders. Robert Dietz, NAHB's chief economist, says conditions are putting upward pressure on prices. “Builders are contending with … [Read more...]

Many surveys have shown an all-cash offer is the surest way to win a bidding war. The problem, of course, is most buyers – and especially first-time and entry-level buyers – don't have the savings necessary to make an all-cash offer. Despite this, they're becoming more common in today's market. In fact, according to one recent analysis, all-cash purchases have accounted for 30 percent of homes sold so far this year. That's the highest number since 2014. So what's behind the trend? Well, a few things. Recent stock … [Read more...]

Among home-improvement projects, painting is a lot easier than having to remodel a kitchen or redo an entire bathroom. That's why it's smart for home buyers to look beyond the color of a home's walls when deciding whether or not the house is a good fit for their needs. After all, if you hate the color of the living room but love everything else about the house, it's a fairly simple problem to solve. But while that's true, it doesn't mean the color of a home's walls don't influence buyers' perceptions of the homes … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates are now at their lowest level since February. Last week, rates fell across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The drop helped push mortgage application demand 16 percent higher than one week earlier, with refinance demand surging 20 percent week-over-week. Joel Kan, MBA's … [Read more...]

Because the pandemic interrupted last year's spring sales season, this year's was hotly anticipated. It didn't disappoint. Buyers returned to the market in droves. But while home buyers were out in force, home sellers didn't return quite as quickly. The result was a market flooded with shoppers but low on homes for sale. Naturally, that led to spiking prices and intense competition for the homes that were available. It got so bad that, according to one analysis, 74 percent of the homes sold in April faced a bidding … [Read more...]