Mortgage rates continue to hover between 2.87% and 3.03%, after remaining low the entire year. These low rates are helping take some of the pressure off buyers, who may have sticker shock.
In our local MLS, which covers a large part of the state, the average price for a home sold in August was $606,789, almost 15% higher than during August 2020, when the average was $528,614. Last month’s average was 28% higher than the average closed price of $473,921 in August 2019.
The S&P CoreLogic Case-Shiller 20-City Composite Home Price NSA Index seeks to measures the value of residential real estate in 20 major U.S. metropolitan areas. In those cities, prices have risen 19.2% since a year ago.
Whatever the pundits may say about millennials, the truth is, they are buying homes and affecting the market. Studies show that “of the 4.75 million home purchases reported in 2020…approximately 1.78 million homes were acquired by young millennials, growing 15.8% since 2019 and far outpacing all other age cohorts…
The double-digit growth in millennial homebuying is responsible for more than 60% of rising total home sales in 2020. Just a year earlier, young millennials’ homeownership acquisition grew only 3.4% and lagged behind older millennials or their parents and the baby boomer generations.”
Locally, we saw a big increase in closings this past week – 22% more than the week before.
We’re learning that despite some cooling in the market and increasing inventories, “the housing market imbalances that propelled price growth to record highs persist. While some buyers are reaching their affordability ceiling and others are fatigued from making multiple offers, many enthusiastic buyers are still competing for limited inventories. This activity is pushing bid prices above asking prices, further fueling price acceleration. Thus, even with new listings continuing to improve, home price growth is likely to remain in double digits throughout the remainder of 2021.”
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Real Estate News