As buyers shy away from a pricey market, more sellers are hoping concessions will help them move their house.
A new report from Redfin found that home sellers gave concessions to buyers in 42.9% of U.S. home sales during the three months ending April 30.
This is up from 25.5% at the same time last year but below February’s all-time high of 45.6%.
Concessions can include money toward repairs, closing costs, and mortgage-rate buydowns.
About one in five homes sold for less than the asking price along with a concession.
Redfin analysts say seasonality is the reason concessions dropped off, as more buyers typically enter the market in spring, giving sellers an edge.
But the high-rate, high-home price environment kept…
By KIMBERLEY HAAS
Attendees at the Mortgage Bankers Association’s National Advocacy Conference shared concerns about housing affordability, trigger leads, and changes to the loan-level price adjustment matrix.
The conference was held last week at the JW Marriott in Washington, DC. MBA members learned about the political and market landscapes on Tuesday before speaking with their elected state representatives on Wednesday. Over 300 members from 39 states participated in those Capitol Hill meetings.
Kellie Allen, vice president of production at Synergy One Lending, was at the conference representing Idaho Mortgage Lenders Association. She was looking forward to talking about the challenges members of her association are facing.
“Affordable housing is a huge one, of course, and then one of the big…
Americans may idolize a white Christmas, but owning a home in the nation’s snowiest states costs a premium, according to a LendingTree analysis. Median-priced homes in the states that got the most snow in December 2021 cost $56,814 more on average than those in the states with the least snow. Alaska, Idaho, and Utah saw the most snowfall last December. Their median home values – $304,900, $369,300, and $421,700 – are 4.93 times higher than their median household incomes. Warmer states are typically less expensive than frigid Northern states, as evidenced by the flood of affordability-minded homebuyers to the Sun Belt. But this isn’t always the case. LendingTree noted that the median home value in Hawaii ($722,500) is at least…
By TYRONE TOWNSEND The Federal Reserve has indicated that the central bank views inflation as a national emergency, with markets expecting a 0.75 percent interest rate rise. However, the Fed’s policy measures could come at a high cost, notably in the housing market. Low mortgage rates and a lack of housing inventory during COVID-19 lockdowns sent home prices skyrocketing during the last two years. The housing market is cooling as mortgage rates have gone up and even surpassed 6 percent. Although this may be an acceptable short-term price to pay in the fight against inflation, it will cause future supply-chain issues after inflation is under control. Before the pandemic, a six-month supply of homes for sale was considered a sign…
December 2021 saw a record annual surge in US home value, the largest gain seen in any December since at least 2001, according to a new analysis of Redfin’s Housing Value Index. U.S. home value rose 18.6% year-over-year (YOY) to $38.6 trillion. Austin, TX, saw home values double that, jumping 39.2% YOY. That shakes out to $365.9 billion, roughly the 2020 GDP of Ecuador and the biggest gain of any metro tracked by Redfin. December marked the 17th consecutive month of double-digit price gains as inventory shrank to a record low. Cape Coral, FL, saw the second-highest gains (36.9%), followed by Grand Rapids, MI (33.1%), Phoenix (32.8%), and Boise, ID (32.8%). Cape Coral and Phoenix have consistently made the list…
The total number of loans in forbearance fell from 1.67% of servicers’ portfolio volume to 1.41% in December 2021, according to the Mortgage Bankers Association’s (MBA) Loan Monitoring Survey. The pace of monthly forbearance exits is at its lowest point since MBA began tracking exits in June 2020. MBA estimates 705,000 homeowners are currently in forbearance plans. Independent mortgage banks saw a 0.28% decline from 1.94% to 1.66%, while depositories saw a 0.28% drop from 1.52% to 1.24%. The share of forborne Fannie and Freddie loans fell to 0.68%, down by 8 basis points, while Ginnie Mae loans fell from 2.10% to 1.63%, down 47 basis points. PLS and portfolio loans in forbearance dropped by 51 basis points to 3.43%.…
Home prices across the country climbed 18.1% year-over-year (YOY) in November 2021, according to CoreLogic’s Home Price Index (HPI) Report. This is the highest annual growth since at least 1976 when the HPI began. For comparison, the annual growth in November 2020 was 8.1%. Home price growth, which is calculated against the median national home sale price, was up in all four price tiers measured by CoreLogic. The lowest price tier rose 19.8% YOY, while the low- to middle-priced tier rose 19%. Middle- to moderately-priced homes saw an increase of 19.1%, while high-priced homes saw prices rise 18.6%. Arizona saw the highest YOY appreciation (+28.6%), followed by Florida (+25.8%) and Idaho (+25.5%). Washington, D.C., and Alaska were at the bottom…
The total number of loans in forbearance fell from 2.06% of servicers’ portfolio volume to 1.67% in November, according to the Mortgage Bankers Association’s (MBA) Loan Monitoring Survey. MBA estimates 835,000 homeowners are currently in forbearance plans. Independent mortgage banks saw a 0.34% decline from 2.28% to 1.94%, while depositories saw a 0.5% drop from 2.02% to 1.52%. The share of forborne Fannie and Freddie loans fell to 0.76%, down by 16 basis points, while Ginnie Mae loans fell to 2.10%, down 42 basis points. PLS and portfolio loans in forbearance dropped by 106 basis points to 3.94%. “The share of loans in forbearance in November declined – albeit at a slower pace than October – as borrowers continued to…
By KIMBERLEY HAAS As people throughout the country wish for a white Christmas this upcoming weekend, it is expected that home sales will stay warm in many parts of the nation throughout the winter. Continued bidding wars, the Great Resignation, and Millennials on the market will all likely contribute to keeping home prices high during a season where sales typically cool off until spring. And above-average temperatures expected in many parts of the United States may also keep buyers on the market at a time when they would typically try to avoid moving due to snow and ice. Bidding Wars Redfin reported on Friday that in November, 59.5% of home offers written by their agents faced competition, which is the…
By KIMBERLEY HAAS More than a quarter of the states in the country have experienced a rental price increase of 20% or more in 2021 and a senior research analyst says people moving out of cities and into more rural communities are partially to blame. Nick VinZant works for QuoteWizard by LendingTree. He co-authored an article that was published this month which shows that Florida had the highest percentage increase in the nation at 29%. The average rent for a one-bedroom apartment in Florida is about $1,425. Arizona, Georgia, Idaho, Massachusetts, Nevada, New Hampshire, New Mexico, New York, North Carolina, Rhode Island, Tennessee, Utah, and Washington all saw rents increase by more than 20% for one-bedroom apartments in 2021, according…
