Renters are more likely to have lost their job or wages during the Covid-19 pandemic than homeowners, according to a new report released this week by Redin. “The pandemic is exacerbating inequality and widening the wealth gap between those who own homes and those who don’t,” Redfin chief economist Daryl Fairweather said. Renters who have lost jobs or wages are likely dipping into savings for daily living expenses, pushing homeownership further out of reach. More homeowners have been able to keep their jobs, and many who can work remotely are cashing in their home equity to purchase a bigger, better home in a more desirable area.” The report, based on a survey of more than 3,000 U.S. residents in October, found:…
The calendar has turned to fall, but the housing market still seems to think it’s summer. The U.S. housing market chugged along at near record levels in October – with houses selling faster in October than September for the first time since 2011, according to a new report released by realtor.com. “In the fall, we normally see homes sell more slowly and prices pull back from peak levels. But this October, we saw a drop in the time it takes to sell a home even while home prices remain at their summer peak,” said Danielle Hale, chief economist for realtor.com. The report found: Homes sold in 53 days in October, 13 days faster than last year and one day faster than…
It’s getting harder and harder to afford a home. Housing affordability continued to decline in the third quarter, as inventory shortages and rising home prices offset record-low mortgage rates, according to a new report released Friday by the National Association of Home Builders (NAHB). The NAHB/Wells Fargo Housing Opportunity Index found that 58.3 percent of new and existing homes sold between the beginning of July and end of September were affordable to families earning an adjusted U.S. median income of $72,900 – down from 59.6 percent in the second quarter. “A six-month supply of homes is considered a normal supply and demand balance, and this figure has been running below a four-month rate since July, putting upward pressure on home…
Sales of newly built single-family homes fell slightly in September – but remained significantly higher than a year ago, according to a report released by the National Association of Home Builders. New home sales fell 3.5 percent from August to September. The September rate is 32.1 percent higher than 2019, and new home sales are up 16.9 percent overall this year. “With sales up 32 percent from a year ago, the demand for new single-family homes remains strong as interest rates are at historic lows,” NAHB Chairman Chuck Fowke said. “However, the recent run-up in lumber and other material costs is leading to an increase in pricing.” New home sales were up across the country in 2020, including 22.5 percent…
In another sign of the political divide in the United States, 42 percent of Americans say they would be hesitant to move to an area where a majority of people have different political views from their own. That’s according to a new survey conducted this month by Redfin, which found the notion of cocooning increased from 32 percent in June and was the highest share since 2017, when Redfin began asking that survey question. “With political signs lining the front yards of homes across America, house hunters can’t escape the political views of their prospective neighbors,” said Redfin chief economist Daryl Fairweather. “While living among like-minded people is important to many homebuyers, key concerns like affordability and space are more…
The official numbers are in – and home prices continue to surge in the United States. The Federal Housing Finance Agency reported Tuesday that home prices increased 1.5 percent in August from the previous month – and a whopping 8 percent from August 2019 amid historically low interest rates and a shortage of homes on the market during the Covid-19 pandemic. For the nine census divisions, monthly house price increases ranged from 0.9 percent in the East South Central division to 1.9 percent in the West South Central division. The annual increases changes ranged from 7.2 percent in the West North Central division to 9.7 percent in the Mountain division. “This large month-over-month gain contributes to an already strong increase…
Suburbs. High sales prices. And fewer dining rooms. Another survey released Monday found that the housing market remains hot during the Covid-19 pandemic – with buyers moving to the suburbs and sellers continuing to get above asking price. The survey, conducted on behalf of United Wholesale Mortgage, found: Nearly half of those surveyed who moved to a new home since March 1 moved to the suburbs.70 percent of the people surveyed who purchased a new primary home also sold their old home, with nearly 3 in 4 consumers selling their home above asking price.Nearly 60 percent of those surveyed are starting or continuing home renovations in the coming year.Of those who are creating office space for working from home, 46…
Americans largely consider it important to live in communities where people share their political views, though most have not considering moving somewhere based on politics, according to a survey released by realtor.com. The survey – conducted ahead of next week’s presidential and congressional elections – found that younger Americans are more inclined to let political views drive where they live. The survey found: 55 percent of Americans consider it important to live in a place with people who share their political views, while 23 percent it was “not very important” and the rest were indifferent.61 percent of 18- to 34-year-olds considered it important, while 49 percent of those 55 and over considered it important.20 percent of respondents said they had…
Home prices soared by 14.4 percent in September, the largest annual increase of any month since Redfin began tracking prices in 2012, according to a report released Monday by the real estate brokerage. The increases are being driven by three converging factors, Redfin concludes: record-low mortgage rates, a historic housing supply shortage and a demand for bigger homes in pandemic times. “2020 will be known for a lot of things and a record-breaking year for real estate will certainly be one of its more unexpected legacies,” Redfin chief economist Daryl Fairweather said. “Demand typically abates in late summer and early fall, but seasonal patterns don’t stand a chance against the other factors motivating homebuyers this year. Homebuyers are seeking spacious…
More than 6 million households in the United States missed rent or mortgage payments and 26 million missed student loan payments in September as the economic effects of the Covid-19 pandemic stretched into their seventh month. The Mortgage Bankers Association’s Research Institute for Housing America report released Friday found that 8.5 percent of renters – or 2.82 million households – missed, delayed or made a reduced payment. Another 7.1 percent of homeowners – or 3.37 million – missed mortgage payments. Overall, the missed payments accounted for than $58 billion in revenue during the third quarter, the report found. “Rent and mortgage payment collections improved over the summer as more people went back to work, but high unemployment continues to place…
