Housing Market News for the Week of May 20, 2022 | |
NAR’s Yun: ‘The Market Is Quite Unusual’ | |
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For the third consecutive month, existing-home sales fell, but buyers are still eager. Higher mortgage rates and prices and low inventory continue to chip away at affordability. Some regions of the U.S., however, continue to see gains.
Nationwide, existing-home sales—completed transactions of single-family homes, townhomes, condos, and co-ops—decreased 2.4% in April compared to March, according to the National Association of REALTORS’ latest housing report. Sales are down 5.9% year over year.
Read more from NAR's Realtor Magazine.
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Get the Latest Local Housing Market Data from Long and Foster's Market Conditions Report | |
Where Are Big Investors Buying the Most Homes? | |
Homebuyers are facing increasing competition for properties from large, deep-pocketed investment firms. Many are losing bidding wars to corporations offering all cash to turn more affordably priced houses into rentals, or to flip them for resale.
Institutional investors made up about 13% of home sales in 2020, according to a recent report from the National Association of Realtors®. That was an increase from 2020, when institutional investors made up about 11.8% of home sales. However, it is still below the peak in 2014, when investors represented about 15.7% of all homebuyers.
Read more from Realtor.com.
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Existing-Home Sales Retract 2.4% in April | |
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Existing-home sales recorded a third straight month of declines, slipping slightly in April, according to the National Association of Realtors®. Month-over-month sales were split amongst the four major U.S. regions, with two areas posting gains and the other two experiencing waning in April. Year-over-year sales struggled, as each of the four regions reported dips.
Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, slid 2.4% from March to a seasonally adjusted annual rate of 5.61 million in April. Year-over-year, sales dropped 5.9% (5.96 million in April 2021).
Read more from the National Association of Realtors.
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A Swimming Pool Isn’t Always a Goldmine | |
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Pools can be a selling point for some homes—but sometimes they can be a detriment. Many American homeowners may find owning a pool a little too risky and expensive, according to a new survey from ValuePenguin, an insurance resource.
More than one in 10 Americans who have a pool on their property now say it’s not worth the trouble. Their biggest gripes are the expense and liability; homeowners say they spend nearly $1,500 a year to maintain their pool. Safety around the pool—such as from slipping and falling on the pool deck—is also a big concern. Thirty-two percent of pool owners say a safety-related incident has happened at their pool.
Read more from the National Association of Realtors.
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The Most Popular Spaces to Remodel and Their Costs | |
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Since the pandemic began, homeowners have been eager to spruce up their spaces. Even recently, homeowners are spending more on home improvement projects than they have—due partially to higher building material costs, but also to a desire to widen the scope of their projects.
Kitchens and bathrooms continue to be the most popular areas to renovate, according to the 2022 U.S. Houzz & Home Study. The median spend in 2021 on a kitchen remodel was $15,000, a 25% increase from 2020. A guest bathroom expenditure costs a median of $4,400, a 38% year-over-year increase, according to Houzz’s report.
Read more from NAR's Realtor Magazine.
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Mortgage Market Update
Economic uncertainty is causing mortgage rate volatility. As a result, purchase demand is waning, and homebuilder sentiment has dropped to the lowest level in nearly two years. Builders are also dealing with rising costs, meaning this posture is likely to continue.
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We hope you enjoyed this week's Market News. For more information about how we can help you, please contact us. | |
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. | | | | |
