From our friends in KCM
If you’re planning to move soon, you might be wondering if there’ll be more homes to choose from, where prices and mortgage rates are headed, and how to navigate today’s market. If so, here’s what the professionals are saying about what’s in store for this season.
Odeta Kushi, Deputy Chief Economist, First American:
“. . . it seems our general expectation for the spring is that we will see a pickup in inventory. In fact, that already seems to be happening. But it won’t necessarily be enough to satiate demand.”
Lisa Sturtevant, Chief Economist, Bright MLS:
“There is still strong demand, as the large millennial population remains in the prime first-time homebuying range.”
Danielle Hale, Chief...
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By Greg Robb | Realtor.com
The numbers: Construction of new U.S. homes rebounded 10.7% in February to an annual pace of 1.52 million units, the Commerce Department said Tuesday. That is the biggest gain in nine months. Despite the increase, starts are still below December’s level.
Economists on Wall Street were expecting a 7.4% rise in housing starts in February to 1.43 million. All numbers are seasonally adjusted.
The number of housing starts in January was revised slightly higher, to a drop of 12.3% to 1.37 million, from an initial reading of a 14.8% drop to 1.33 million. It is still the biggest drop since May 2022.
Building permits, a sign of future construction, rose...
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By Clare Trapasso | Realtor.com
The housing market isn’t off to a good start this year.
The number of homes under contract that haven’t closed yet dropped 4.9% from December to January, according to a recent report from the National Association of Realtors®. Year-over-year pending home sales were down 8.8% in January.
The culprit? Rising mortgage rates that make it more expensive for folks to purchase homes.
“Consumers are showing extra sensitivity to changes in mortgage rates in the current cycle, and that’s impacting home sales,” said NAR Chief Economist Lawrence Yun in a statement.
Mortgage rates had dropped to a low of 6.61% in late December but ticked up slightly in January, according to Freddie Mac data.
“Buyer demand...
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From our friends in KCM
If you’re taking a look at your expenses as you retire, saving money where you can has a lot of appeal. One long-standing, popular way to do that is by downsizing to a smaller home.
When you think about cutting down on your spending, odds are you think of frequent purchases, like groceries and other goods. But when you downsize your house, you often end up downsizing the bills that come with it, like your mortgage payment, energy costs, and maintenance requirements. Realtor.com shares:
“A smaller home typically means lower bills and less upkeep. Then there’s the potential windfall that comes from selling your larger home and buying something...
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By Aarthi Swaminathan | Realtor.com
The numbers: Sales of newly built homes in the U.S. inched up in January, even as mortgage rates rose.
U.S. new-home sales rose 1.5% to an annual rate of 661,000 in January, from a revised 651,000 in the prior month, the Commerce Department reported Monday.
The number is seasonally adjusted and refers to how many homes would be built over an entire year if builders continued at the same pace every month.
The pace fell short of expectations on Wall Street. Economists had forecast new-home sales to total 680,000 in January.
Mortgage rates rose to a six-week high at the end of January, according to data from Freddie Mac, which might...
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From our friends KCM
Based on what you’re hearing in the news about home prices, you may be worried they’re falling. But here’s the thing. The headlines aren’t giving you the full picture.
If you look at the national data for 2023, home prices actually showed positive growth for the year. While this varies by market, and while there were some months with slight declines nationally, those were the exception, not the rule.
The overarching story is that prices went up last year, not down. Let’s dive into the data to set the record straight.
2023 Was the Return to More Normal Home Price Growth
If anything, last year marked a return to more normal home price...
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From our friends in KCM
Have you been thinking about selling your house? If so, here’s some good news. While the housing market isn’t as frenzied as it was during the ‘unicorn’ years when houses were selling quicker than ever, they’re still selling faster than normal.
The graph below uses data from Realtor.com to tell the story of median days on the market for every January from 2017 all the way through the latest numbers available. For Realtor.com, days on the market means from the time a house is listed for sale until its closing date or the date it’s taken off the market. This metric can help give you an idea of just how quickly homes...
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From our friends in KCM
As you think about the year ahead, one of your big goals may be moving. But, how do you know when to make your move? While spring is usually the peak homebuying season, you don’t actually need to wait until spring to sell. Here’s why.
1. Take Advantage of Lower Mortgage Rates
Last October, the 30-year fixed mortgage rates peaked at 7.79%. In January, they hit their lowest level since May. That means you may not feel as locked-in to your current mortgage rate right now. That downward trend in rates has made moving more affordable now than it was just a few months ago.
Another reason today’s rates make now a good...
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By Patrick S. Duffy | US NEWS & WORLD REPORT
Monthly costs in these locations start as low as 18% of local per capita incomes, compared with the national average of 39%.
Detroit may not be the most undervalued area for long. Its economy will continue to see steady growth in the years ahead with more jobs and higher wages for area residents.
Key Takeaways:
The most undervalued markets to purchase a home continue to be located predominantly in the Midwest and the East Coast, led by Detroit, Cleveland, Philadelphia, St. Louis and Oklahoma City.
The most undervalued markets to rent a home are also concentrated in the Midwest, led...
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By Jillian Pretzel | Realtor.com
Thinking about selling your house in 2024? While many home sellers wait until spring to put their property on the market, there are some distinct advantages to getting ahead of the curve this year and listing sooner rather than later.
Generally, the cold weather season causes home sales to be sluggish, but this winter is a bit different. High interest rates kept much of America’s real estate market in a deep freeze for most of 2023. But now that rates have subsided a bit in the new year, there is a whole lot of pent-up demand (and supply) that could burst onto the market at any...
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