Defying high unemployment and an economic recession, the housing market has surged during the COVID-19 pandemic. That isn’t likely to let up heading into the winter months, said Lawrence Yun, chief economist of the National Association of REALTORS® during Tuesday’s “Residential Economic Issues & Trends Forum” at the virtual 2020 REALTORS® Conference & Expo.
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Home Sales Defy Expectations, Crushing Another 14 Year Record
The hot home sales market continued unabated in October. The National Association of Realtors® (NAR) reports that existing home sales grew for the fifth consecutive month and 72 percent of homes that sold were on the market for less than a month.
Single-family houses, townhouses, condos, and cooperative apartments sold in October at a seasonally adjusted annual rate of 6.85 million units. This was an increase of 4.3 percent from the September pace and 26.6 percent above the rate of 5.41 million sales in October 2019. Read more from Mortgage News Daily.
Second Homes Are Driving the U.S.’s Covid-19 Housing Boom
Demand for second homes doubled in October over a year ago.
Second-home purchases are driving the surge in U.S. housing activity, punctuating the disconnect between a booming housing market and a battered economy where millions are still out of work.
Demand for second homes doubled in October over a year ago, according to an analysis real estate firm Redfin published on Thursday. Redfin looked at data on mortgage rate lock agreements between home buyers and banks, in which borrowers must specify whether the home they’re buying is primary, secondary or investment. The mortgage lock data was supplied by analytics firm Optimal Blue. Read more from Market Watch.
Homebuilder Sentiment Hits Record High in November
U.S. Housing Starts Beat Expectations in October
U.S. homebuilding increased more than expected in October, suggesting the housing market continues to be sustained by historically low mortgage rates even as the economic recovery shows signs of strain amid a resurgence in new COVID-19 infections.
Housing starts rose 4.9% to a seasonally adjusted annual rate of 1.530 million units last month, the Commerce Department said on Wednesday. Data for September was revised up to a 1.459 million-unit pace from the previously reported 1.415 million. Read more from Reuters.
Mortgage Market Update
Weaker consumer spending data, which accounts for the majority of economic growth, drove mortgage rates lower. While economic growth remains unstable, strong housing demand continues to have a domino effect on many other segments of the economy.
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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.