Four Key Trends in Today’s Real Estate Market

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As we quickly approach the fourth quarter of the year, we know one thing: today’s real estate market is one for the record books in several different ways. There is a huge opportunity for both buyers and sellers.

Below we have listed four major aspects that shape the unprecedented market we are currently in.

A Shortage of Homes for Sale

You might recall that earlier this year, there were very few homes available for sale. Lately, this trend has changed, and more homes are on the market. The latest Monthly Housing Market Trends Report from realtor.com says:

“In June, newly listed homes grew by 5.5% on a year-over-year basis, and by 10.9% on a month-over-month basis. Typically, fewer newly listed homes appear on the market in the month of June compared to May. This year, growth in new listings is continuing later into the summer season, a welcome sign for a tight housing market.”

For the buyers that want more options for homes, this is great news! Even though we can see a slight increase on homes available, having readily available homes is still a challenge in some states.

Buyer Competition and Bidding Wars

The low supply of homes in today’s market, along with the high buyer’s demand, makes for a high buyer competition and bidding wars. Buyers are making offers like they haven’t before. These offers are standing out because they might be offering all cash or waiving some contingencies. This market is great for sellers, and buyers with the right team to help them prepare outstanding offers.

The latest Confidence Index from the National Association of Realtors (NAR) says the average home for sale receives five offers:

Home Price Appreciation

Home prices are on the rise, making the housing market very competitive. In the past year, home price appreciation has rose a lot across the country. According to the most recent Home Price Index (HPI) from CoreLogic, national home prices increased 15.4% year-over-year in May:

“The May 2021 HPI gain was up from the May 2020 gain of 4.2% and was the highest year-over-year gain since November 2005. Low mortgage rates and low for-sale inventory drove the increase in home prices.”

An increase in home values is a major part of why real estate remains one of the top sought-after investments for Americans.

A Rise in Home Values and Equity

When you become a homeowner, your home equity doesn’t just grow when you pay the mortgage, it also grows as the home appreciates in value. CoreLogic recently reported:

“…homeowners with mortgages (which account for roughly 62% of all properties) have seen their equity increase by 19.6% year over year, representing a collective equity gain of over $1.9 trillion, and an average gain of $33,400 per borrower, since the first quarter of 2020..”

Bottom Line For Homebuyers

Are you thinking about buying a house? There’s no time like now! If you connect with our team today to talk, you can take advantage of the conditions we’re seeing currently. Whether you are an experienced home buyer or first-time homebuyer, we have the resources to help you find the best mortgage!