Contract Signings Make a ‘Remarkable’ Move

5203 54th Ct SE Salem, OR 97317
Presented by Hamid Karimi | Offered at $2,350,000 | MLS# 20682329

From Realtor Magazine

Pending home sales continued to increase rapidly for the second consecutive month in June despite the COVID-19 pandemic. Based on the Pending Home Sales Index from the National Association of REALTORS®, an increase was seen in the month-over-month contract signings from each of the four major regions in the U.S. as home buyers rushed out to purchase homes across the country.

NAR’s index shows that contract signings increased by 6.3% compared to a year ago.

NAR’s Chief Economist Lawrence Yun said that the contract activity for home purchases is higher compared to a year ago is quite surprising and remarkable considering that we are all amid a global pandemic. Consumers are taking opportunities from the record-low mortgage rates resulting from the Federal Reserve’s maximum liquidity monetary policy.

NAR’s Pending Home Sales Index jumped 16.6% month over month in June to a reading of 116.1.

See snapshot of housing report below:

Yun also said that the strong bounce-back comes after a longer lockdown in the Northeast region. The South, on the other hand, has consistently outperformed the rest of the country. And these remarkable rebounds equate to exceedingly a higher buyer demand.

Upbeat Forecasts for 2020 and Beyond

Because of the recent turnaround in contract signings, NARs adjusted its overall housing forecast. For 2020, NAR is now projecting existing-home sales to decrease by only 3%, with sales increasing to 5.6 million by Q4. New-home sales are projected to increase by 3% this year.

Yun is auspicious that positive GDP growth of 4% in 2021 will drive, on both existing and new, higher home sales. He forecasts existing-home sales to increase by 7% in 2021 and new-home sales to increase by 16%.

Home prices are also projected to increase by 4% in 2020. Yun predicts prices will moderate in 2021 but still increase by 3% as more supply is expected to hit the market.

Low financing costs are expected to continue to attract home buyers. NAR predicts that mortgage rates will stay at or near 3% over the next 18 months.

Full details on Realtor Magazine


Is the Health Crisis Driving Buyers Out of Urban Areas?

18820 Green Bluff Drive Lake Oswego, OR 97034
Listed by Tony Polito and Jennifer Benelli | Offered at $1,395,000 | MLS# 20229842

From keepingcurrentmatters.com

Coronavirus made consumers reassess the factors that make up the “perfect home”. Locations and layouts of their existing homes were taken into consideration. The appeal of a more congested city life appears to be giving way to either suburban or less congested rural life. The interest with an open floor plan faded as people needed more privacy while working from home.

A recent report from news.com showed that buyers are now leaning heavily for more listings of suburban and rural properties.

Here are the year-over-year percentage increases in views per property type:

  • Urban – 7%
  • Suburban – 13%
  • Rural – 16%

Realtor.com’s Director of Economic Research said that the migration to the suburbs is not a new trend but it became more prominent. After several months of staying home, the urge to have more space, and the probability for more people to work from home are factors contributing to this.

Realtor Magazine also reported that the desire to move is strongest in our city markets.

The pandemic also altered how consumers think about floor plans that is

The pandemic also altered how consumers think about floor plans that is why builders are anticipating changes in how future homes will look like. Zillow explained in a recent press release that:

  • Builders believe as people spend more time at home during the pandemic, buyers are realizing which features of their homes are working and not working.
  • Homebuilders predict open-concept floor plans will be a thing of the past, as people now value more walls, doors, and overall privacy.
  • New construction, which offers the chance to personalize home features, saw its listing page views grow by 73% over last May.

The pandemic is impacting the luxury market too. Realtor.com’s Chief Economist previously reported that stay at home and social distancing orders made ‘extra space’ even more relevant. This leads high-end buyers to find a second home that is within driving distance from their primary residence.

It seems that a percentage of people are preparing to leave many American cities. These moves may be permanent, while others may be temporary. In either case, many consumers are on the move and Real Estate Professionals are always ready to help.

Full article on keepingcurrentmatters.com