Many Americans interested in, not only the potential value of their home, but also other homes in their neighborhood, the homes of their friends or homes they dream to own someday, search Zillow.com to see the estimated value the site has calculated. Zillow.com, however, is looking to branch out beyond just providing home price estimates, they have begun to actually buy and sell homes and plan on making the process even easier.
In an article published by CNN Business, the new division of Zillow, called Zillow Offers has some new features to make the process of selling a home possible with just a few clicks of a mouse. As CNN Business reporter, Clare Duffy, details, “For certain homes, Zillow’s ‘Zestimate’— the online estimate of the home’s value — will now represent an initial cash offer from the company to buy the property. That could mean an even quicker timeline for homeowners looking to close a sale without going through the hassle of a formal listing, or a source of helpful data for would-be sellers who want to know how much money they’ll have to buy their next house.”
The Zillow Offers division of the company has been operating in a handful of markets for about three years now. They have been requesting information from homeowners in order to determine the cash offer from Zillow. The new, revamped process, soon to be available in 23 markets, will skip the required questionnaire and photos from the homeowner. Zillow is confident in the information currently available for many of the homes that the posted Zestimate would be the actual cash offer. A homeowner could simply contact Zillow to cash in on the Zestimate. After an inspection and adjustment made based on any repair issues, the sellers could pay a Zillow the seller’s fee and close the deal.
Skeptics doubt the accuracy of the posted home values. Yet, according to the article, Zillow’s COO Jeremy Wacksman points out, “For homeowners who decline Zillow’s cash offer, the difference between Zillow’s offer and what they end up selling for is typically less than 1%…”
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A look back at the first few weeks of 2021 and the national real estate market shows that home sales and the number of buyers increased in comparison to the last few weeks of 2020. Nevertheless, a low inventory of homes continues to create difficulty buying conditions for these would-be homeowners.
In an article published by CNBC.com, reported by Diana Olick, the housing market is compared to the beginning of 2020 where January 2021 is reported to have seen sales 23.7% higher than January of last year. According to the article, ‘“Home sales are continuing to play a part in propping up the economy,” said Lawrence Yun, chief economist for the NAR. “With additional stimulus likely to pass and several vaccines now available, the housing outlook looks solid for this year.”’
However, the availability of homes, in comparison to January 2020, was down 26%. This reported 1.9-month supply, compared to a January 2020 3- month supply, is the lowest ever reported. Of course, the low housing inventory coupled with the continued demand has allowed the median home price to increase a little over 14% since last January.
The article goes on to report new home sales and how builders have benefited from the shortages but also face supply and labor issues. Read the entire article.
As the new year rolled in, many have reflected on a year of unexpected and historic events and how they impacted many aspects of the lives of Americans. The real estate market had its share of ups and downs as Americans adjusted to new realities of shutdowns, spending more time at home, and mortgage rates that continue to remain exceptionally low. It leaves many real estate professionals and American homeowners and would-be home owners trying to predict what 2021 could possibly have in store for them.
In a piece published by Norada Real Estate Investments, written by Marco Santarelli, many questions for the future of the market in 2021 are posed and explanations and predictions are provided. The article addresses questions Americans might have about a potential affordability crisis, if the value of homes will continue to rise, what the trends in new home construction might be and whether or not a housing market crash is predicted in 2021.
Santarelli indicates, “While we still face economic and health challenges ahead, it is no doubt that the nation will continue to recover from this pandemic and an improving economy will continue to prop up the housing market competition. Industry experts believe the housing market will remain strong and is set to break more records in 2021.” He describes how it continues to be a seller’s market and a continued rise in home prices could lead to affordability issues.
To add, some experts, such as Zillow Economic Research, predict that home values will, in fact, continue to increase. Some predictions call for a 3.6% increase over the next three months and appreciate of home value by up to 10% through the end of 2021.
As the demands for houses continues to outpace the availability, new home construction attempts to fill the gap. However, according to the article, “Land and material availability and a persistent skilled labor shortage will continue to place upward pressure on construction costs resulting in limited housing supply.”
Read the entire article for more predictions for 2021.
The pandemic has impacted Americans in a variety of ways. To say the real estate market, in many parts of the U.S., has changed in unexpected ways would be an understatement. The demand for homes far outnumbers the supply in many areas of our country.
According to an article published by CNBC.com, reporter Kevin Stankiewicz finds, “Existing home sales increased 9.4% in September, surpassing expectations, and the median purchase price rose nearly 15% year over year, according to data released earlier Thursday by the National Association of Realtors.”
Consumers are enticed by low interest rates and, those who can afford and are able to, are moving out of major metropolitan areas to suburban areas or even to second homes in vacation areas, where they might be able to work remotely.
Although buyers continue to search for homes and rush to put an offer in when they find the perfect home, the number of homes for sale has tightened up. Nevertheless, it is anticipated that after the election, more sellers may decide to put their homes on the market. One professional, Glen Kelman of Redfin, is quoted in the article, “I think the sellers are just looking long term at the economy and still feeling some anxiety. Many of them are going to put their homes on the market in January and February.”
While many realize the type of demand for homes that has been occurring since the summer of 2020 cannot last forever, its is expected to continue into the new year as more and more Americans find ways and reasons to relocate.
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First time home buyers who decided that 2020 would be the year they would leap into home ownership were met with a variety of challenges, economically, personally and emotionally. Obviously, the pandemic has had effects that are wide-reaching; the real estate market has not been immune.
In an article published in the Chicago Sun Times, the effects of COVID-19 on the real estate market are detailed. To begin, as fears of becoming ill with the coronavirus spread, home inventory dropped as homeowners feared having strangers in their homes for showings. In fact, the inventory dropped 20% in June in comparison to June 2019.
Nevertheless, there were still many Americans searching for homes and with mortgage rates falling, many more prospective home buyers began to enter the home search as well. With the influx of buyers searching the low inventory of homes, buyers found themselves in competition with other buyers; homes were purchased quickly and sometimes secured offers above their asking price.
This type of real estate market can be intimidating and frustrating for anyone trying to purchase a home. However, the impact on first time home buyers has been significant. The price of homes has risen faster than incomes, making more and more homes unaffordable for these prospective home owners.
To help prepare mentally and financially for the bumpy road that may lay ahead for these first time home buyers, article details some important tips and reminders for first time home buyers and their agents.
These buyers should expect some disappointment in the home buying process and be aware that they might not be successful in purchasing a home immediately. However, it they stay the course, most likely, the results will eventually be in their favor.
To avoid the emotional pitfalls of home buying, buyers should know up-front how much they are willing to spend on a specific home. This will allow them to walk away before over paying or letting a deal fall through over a few hundred dollars.
An important step to take to prepare for the home purchasing process is to get pre-approved for the loan. Knowing a buyer is pre-approved can help a seller feel more confident about the buyer’s ability to complete the purchase and can give the buyer a leg up on competition.
If the current state of the real estate market is too overwhelming and homes are beyond a buyer’s financial reach, the last bit of advice is to consider waiting. Perhaps the market conditions will change in the next few months and a buyer can secure some additional funds for a down payment to put down on that perfect home.
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As residents of the U.S. sort through the many updates on the progress of containing the outbreak of COVID-19 cases, anxiously await news for a vaccine and patiently waiting to find out when life will return to some sense of normal, the U.S. economy fluctuates with the positive and not so encouraging updates. Most recently, the news of the economic uncertainty due to the pandemic has impacted mortgage rates, yet again.
According to an article published by CNN, mortgage rates recently dropped below 3% for a 30 year mortgage. This drop marked a 50 year record low for mortgage rates. As a result, many home buyers, and those that were sitting on the fence debating purchasing a home, have decided that there’s no time like the present to make the move. The demand for homes has increased, especially since the lower rates has allowed more prospective home buyers to afford homes that might have been just beyond their reach just a few short weeks ago.
However, just as the daily news cycle is filled with promise coupled with concerning medical and economic updates, the good news about rates is wrapped with a warning of what may be on the horizon. Since the rise in coronavirus cases seems to be surging again, more job layoffs and even job losses could be inevitable. Obviously, as unemployment rises, home buyers can be hesitant, if not unable, to purchase a home.
As the article quotes Danielle Hale, chief economist for Realtor.com, things could look up soon, “On the upside, signs of progress toward a coronavirus vaccine give hope that there’s a path to a new normal where health concerns don’t dominate decision making.” We all hope that comes sooner rather than later.
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At first glance, reported home sale prices that only increased .5% year over year in May 2020 might appear to be disappointing news for real estate professionals and their customers. However, according to an article published by Redfin.com, the slight gain was mostly impacted by the small number of homes selling in expensive U.S. cities. Further, Redfin’s lead economist Taylor Marr sees some positive news based on other spring sales numbers, stating, “Although the housing market was still mostly stalled in May, it’s worth noting that homes under contract to be sold jumped 33% between April and May after two consecutive months of decline. This is a key leading indicator for home sales in June and July. New listings of homes for sale have also likely passed their bottom…”
Nevertheless, the market still has a ways to go before it is back on track to performance during the pre-COVID-19 shut down. Although all large metro areas in the U.S. have seen significant declines in home sales as compared to last spring, areas such as Michigan and Pennsylvania saw decreases of over 60%. These are examples of a couple of states that were the most restrictive for staying at home during the pandemic’s initial outbreak.
Yet, good news appears to be on the horizon. New listings, according to the article, increased almost 36% from April. Additionally, days on the market and number of homes selling above list price remain positive, signs of a strong buyers’ market continued throughout the state wide shut downs, due to continued low inventory of homes and low mortgage rates.
Read the entire article for more details and highlights across the nation’s metro areas.
The global pandemic brought the U.S. real estate market to a screeching halt during the spring months of March and April. With stay at home orders in place and uncertainty among Americans about the best ways to stay safe from the spread of COVID-19, many sellers decide to hold off or cancel listing their home for sale. However, May has brought loosened restrictions for business and social interactions, leaving Americans feeling that it may be safer to resume some activities that had been put on the back-burner. Specifically, Americans that want to purchase a new home are beginning to ramp up their search and even make offers to purchase homes.
However, the fact remains that the number of homeowners listing their homes had been steadily declining. And despite a small up-tick, the supply for homes continues to be low, down by almost 30% annually as of the first week of May. Nevertheless, there is a significant number of potential home buyers that are looking to take advantage of low mortgage rates. Not to mention, many Americans have spent more time in their current homes during stay at home orders, helping them realize they need a larger home, perhaps a home office or more outdoor space. These factors have helped drive up the demand for homes in many parts of the U.S.
CNBC.com published an article by Diana Olick that describes a major uptick in bidding wars for homes as a result of the mismatched supply and demand. In fact, the article says, “More than 41% of homes faced a bidding war in the four weeks ending May 10, according to Redfin.” Realtors in areas such as Boston, San Francisco and Fort Worth, Texas, indicate that more than 60% of purchase offers are met with competition from other buyers.
Read the entire article.
It may not come as a surprise to read that the housing market has been affected by the COVID-19, but many home owners and potential buyers may be curious what experts think the future holds for this year’s real estate market.
As stay at home restrictions coupled with fears of the spread of the pandemic began in March, pending sales on homes took a direct hit. In fact, they fell 20.8% in comparison to February. According to an article published by CNBC.com, the housing market had already been impacted by a shortage of homes for sale. As the news and impact of COVID-19 settled in, the shortage became more drastic as owners decided not to list and some homes were actually de-listed.
However, experts believe, according to this piece written by Justin Sullivan, that this impact should turn around. Quoting Lawrence Yun, NAR’s chief economist, “The housing market is temporarily grappling with the coronavirus-induced shutdown, which pulled down new listings and new contracts. As consumers become more accustomed to social distancing protocols, and with the economy slowly and safely reopening, listings and buying activity will resume, especially given the record low mortgage rates.”
After 5 weeks of decreasing mortgage applications, there was recently a double digit rise in mortgage applications. And, although the home sales may be low for the year, home prices should not be impacted. The fact that there is still a shortage of homes and the mortgage rates are low enough to attract buyers, prices could see some significant increases.
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The impacts of COVID-19 are far-reaching and include not just health concerns, but concerns about jobs and the economy. An obvious result of the turbulent economy and the alarming rate Americans are losing their jobs is a down turn in the real estate market.
According to an article published by Market Watch, “…the rapid rise in unemployment as a result of the coronavirus pandemic and its accompanying stay-at-home orders will curtail many Americans’ ability to afford a purchase as big as a home”, states reporter Jacob Passy. Further, sellers are more hesitant to put their homes on the markets due to uncertainty about pricing and the desire to avoid strangers from entering their homes unnecessarily.As a result, Fannie Mae projects that home sales will fall by almost 15% in 2020.
Yet, this doesn’t necessarily translate to bad news the prices of homes. Fannie Mae still expects the median prices of homes to rise for both existing and new homes. Further, the article states, “The mortgage giant currently expects the U.S. economy and home sales both to rebound in 2021. But that rebound is contingent on the pandemic’s trajectory.”
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