US Home Sales On Track For The Best Year Since 2006
According to a report from the National Association of Realtors, home sales were up for the second month in a row in October despite low supply and rising prices.
Existing home sales increased 0.8 percent month over month, including single-family homes, townhomes, condominiums, and co-ops. After slumping during the summer, sales picked up in September, with a 7% gain month over month. Home sales were down 5.8% year over year from October 2020, when the pandemic surge in home buying reached its cyclical peak. Lawrence Yun, NAR’s chief economist, said that sales are on course to transcend 6 million homes this year, which would be the best performance since 2006.
Homeowners Besieged By Unsolicited Offers
Following the housing meltdown, many homebuilders went out of business, resulting in a historic housing shortage. Now, large and small investors are vying for homes as the scarcity of supply continues to drive up prices. According to Freddie Mac, the inventory of homes is over 4 million short.
Big companies like Redfin and Opendoor, as well as numerous individual speculators, real estate agents, and other predatory outfits, have been calling homeowners in the hopes of persuading them to sell to some random person on the phone.
Michael Froehlich, an attorney with Community Legal Services in Philadelphia, says homeowners should be cautious about responding to any direct solicitation. According to him, people are nearly always better off listing their home for sale, receiving several offers, and selecting the best one.
Sky High Home Prices May Push Fannie Mae And Freddie Mac To Back Loans Of Nearly $1 Million
Home prices have skyrocketed across the country in the last year, as demand for homes has surged and inventory has plunged.
However, increased costs are anticipated to push conforming loan limits to what analysts predict will be record highs in 2022, with the maximum loan limit in high-cost areas reaching over $1 million. The Wall Street Journal revealed the projected increases on Tuesday, and industry journals have also predicted the changes. Non-conforming or “jumbo” mortgages are those that exceed the “conforming” loan restrictions set by federal mortgage giants Fannie Mae and Freddie Mac and come with higher interest rates.
The new conforming loan limitations are likely to be announced by the Federal Housing Finance Agency, which regulates the two mortgage powerhouses, by the end of November. However, the method for raising the limitations each year considers how much property values have risen in the previous year, which in 2021 has been quite significant.
Next weeks potential market moving reports are:
- Monday, November 29th – Pending Home Sales
- Tuesday, November 30th – Home Price Index, Consumer Confidence Index
- Wednesday, December 1st – Employment Report, Construction Spending
- Thursday, December 2nd – Initial Jobless Claims, Continuing Jobless Claims
- Friday, December 3rd – Unemployment Rate
As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at (800) 216-1047