2020 Was a Surprisingly Strong Year for Housing. Here's Why 2021 Could be Stronger. |
- We expect 5.7 million existing homes to sell by the end of 2020, up 5.9% from 2019.
- In 2021, we expect almost 6.9 million closed existing home sales, the most since 2005 and the biggest one-year gain in sales (21.9%) since the early 1980s.
Home sales and price growth quickly re-accelerated after a brief pause in the spring, and the housing market has become a true silver lining in what has otherwise been a tumultuous year for the economy. We expect this wave of home value and sales growth to continue to grow into 2021, putting next year on pace to be the strongest year for the housing market since 2005. Read more from Zillow.
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Five Questions for the New Year |
While COVID-19 has wreaked havoc on most of the economy last year, Wells Fargo's Securities Economic Group says many of the responses to the pandemic - lockdowns, remote schooling, and remote work - served to "flip the script" on housing, increasing demand for some types of properties and locations. At the same time, massive job losses have caused a spike in the delinquent mortgage and rent payments, although forbearance and moratoriums have held foreclosures and evictions to a minimum. A new report from the economists puts forward and answers five questions about the direction of housing over the next year. Read more from Mortgage News Daily.
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Contract Signings Surge to Record High for November |
Real estate pros are quickly submitting offers for clients as the buyer frenzy, unusual for the winter season, continues.
Sales have slowed slightly from the high levels recorded this fall. Pending home sales slid in November by 2.6% compared to those in October, according to the National Association of REALTORS®’ Pending Home Sales Index, released on Wednesday. November’s decline marked the third consecutive month for monthly decreases in pending home sales. Read more from NAR's Realtor Magazine.
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Housing Construction Ramps Up in Second-Home Markets |
As remote work has grown and more Americans are no longer bound down to a long commute, more people are being drawn to the idea of a second home. Builders are responding to the uptick in interest.
Single-family construction in second-home markets rose at a 13.6% average rate in the third quarter annually compared to a 10.5% pace in other counties, according to data from the National Association of Home Builders.
Multifamily development in second-home markets is also on the rise. Multifamily development increased 11.1% in second-home counties while it declined by 0.9% in other areas during the third quarter, according to the NAHB. Read more from NAR's Realtor Magazine.
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Data Shows Rapid Acceleration in US Home Price Growth |
US home price growth in November reached its largest annual appreciation since March 2014, according to a report released Tuesday by CoreLogic. The CoreLogic Home Price Index (HPI) jumped 8.2% year over year and rose 1.1% month over month in November.
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Mortgage Market Update
Low Rates Continue into the New Year
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Despite a decline in rates over the past year, housing affordability has decreased because these low rates have been offset by rising home prices. However, the forces behind the drop in rates have been shifting over the last few months and rates are poised to rise modestly this year. |
We hope you enjoyed this week's Market News. For more information about how PMA can help you, please contact us. |
phone: 610.834.8700
Information and analysis is obtained through third parties and is deemed accurate but not guaranteed. Philadelphia Mortgage Advisors is a licensed mortgage lender by the PA Dept. of Banking and Securities, NJ Dept. of Banking & Insurance, the state of DE, the Florida Office of Financial Regulation, MD Mortgage Lender #23004 and VA State Corporation Commission #MC - 6797. NMLS #128570.
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