Monthly market tidbits:
- More lenders reported increased demand for purchase mortgages but significantly reduced refinance mortgage demand. In fact, for refinance mortgages, the net share of lenders reporting demand growth over the prior three months turned net negative for the first time since the first quarter of 2019.
- In a 5-4 Supreme Court ruling Tuesday June 29th the high court said the Centers for Disease Control and Prevention (CDC) lacked the authority to implement the nationwide eviction moratorium. Property owners had lost their property rights and were obligated to continue to maintain and pay taxes on rental properties for going on 11 months with no income from tenants.
- Fannie Mae surveys consumers monthly and found that only 35 percent of consumers reported that it was “a good time to buy” a home, while 67 percent believe it is a “good time to sell.” Not surprisingly, the top two reasons cited by consumers for their negativity toward current homebuying conditions were high home prices and a lack of supply.
- Lawrence Yun, chief economist of the National Association of REALTORS®, summed up the state of the Real Estate market as “FOMO” or the “fear of missing out” on NPR on May 21st
- Home prices are rising quickly, and mortgage rates are near historical lows. Some home buyers may be panicking and believing they need to buy a home right away.
- “They (buyers) are experiencing the fear of missing out,” Yun told NPR. “But at the same time, people feel very uncomfortable needing to make a rushed decision on such a major expenditure.”
- “We anticipate that the market will be steadily calming down,” Yun told NPR. REALTORS® recently surveyed by the National Association of Realtors predict that over the next year, a smaller gain will occur in home prices of just 2.5%, considerably lower than the 19.1% jump this year. More housing inventory is expected to hit the market too as more of the country gets vaccinated and pandemic-related housing protections such as forbearance and eviction moratoriums expire.
- The Wilcox Report compared the market in Fountain Hills in May of 2020 with 2021 and sales of Single Family Detached homes are up 119% from a year ago, and listings are up 37%. 37% is a lot, but not enough to replenish a 119% increase in sales.
- New home sales fell in May due in part to expensive building materials, such as lumber. Good news on the horizon as lumber futures declined 41% in the last month and cash lumber prices are starting to decline. The shortage was caused by early COVID based fear that the housing market would slow down/crash when it in fact accelerated.