Market competition has eased up recently, but seven in 10 buyers still face bidding wars, according to a new report from Redfin.
The COVID pandemic has caused a shakeup in where, and how, many people work. That has helped propel a thriving housing market.
First-time homebuyers found their long-term plans changed due to COVID.
Higher income, backed up by lower mortgage rates, has expanded the reach of the average homebuyer, but an increased demand for homes has concurrently driven up prices, negating two of the three main factors in First American Financial Corp.’s Real House Price Index.
Existing-home sales slid for the third month in a row in April, declining 2.7% from March to a seasonally adjusted annual rate of 5.85 million, according to the National Association of Realtors.
The limited inventory that has plagued the housing market continued, although at an abated pace.
Whether they’re still weary of going to a gym full of people or just looking to work off those extra pandemic pounds in privacy, homebuyers are increasingly prioritizing home exercise rooms.
The employment numbers for March were revised down as well. The most recent data indicate a 770,000 increase in jobs for the month, compared to the previously reported increase of 916,000.
“This is a sign that the competitive purchase market, driven by low housing inventory and high demand, is pushing prices higher and weighing down on activity.” — Mortgage Bankers Association Associate Vice President of Economic and Industry Forecasting Joel Kan.
Year over year, the pace of sales was up 66.8% nationwide.