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The tight US housing market is unleashed as sellers are ready to monetize | News

Future home sellers, who sat tight due to unprecedented rises in U.S. prices during the pandemic and the rapid rise, are finally stepping up to alleviate the serious shortage of the enthusiastic housing market. It came to be cashed.

According to House, an investment platform for homebuyers, the number of homes for sale in the United States increased by 6.7 percent from the same week in May to early June. This was the largest increase since the COVID-19 blockade took place last year. The list grew in 54 of the 100 measured metropolitan areas, including the areas around Philadelphia, New York, Boston, Detroit, Denver, and Seattle.

“Sellers are saying,’It’s time to make money,'” said Julie Welter, an agent at EXP Realty in Pittsburgh, who showed the largest increase in supply in house data. “The reopening of the world and the vaccination of the majority of people has brought new levels of comfort to people.”

The housing market is far from normal, with inventories down nearly 38% year-on-year, approaching historic lows. However, with the outbreak of coast-to-coast bidding wars, signs of increased supply are a welcome rest for buyers. A larger list may also help alleviate the issues that contribute to rarity: the seller remains in place because he is having a hard time finding something to buy.

Throughout the pandemic, homebuyers demanded to take advantage of record low interest rates and the flexibility of mobile work, but found that the few homes available were swallowed quickly. .. According to the National Association of Real Estate Agents, median existing home prices in the United States rose 19% year-on-year to a record $ 341,600 in April, helping owners acquire shares.

The end of the blockade is also pulling out sellers who were reluctant to let home shoppers pass through their kitchens and bedrooms. House chief economist Ralph McLaughlin said some people want to get closer to the family that Covid has kept them away for too long.

“People who were thinking of selling in a couple of years might have accelerated their plans,” McLaughlin said. “They are now selling to realize the 20% stake they have acquired over the past year.”

Shauna Pendleton, a Redfin agent in Boise, Idaho, said 35 sellers had talked to her about the list of properties this year. She said it was about twice that of the same period in 2020. According to Redfin, the region has seen the fastest rise in prices in the country, with home prices rising 42% year-on-year in early June.

“These are mostly retirees,” Pendleton said of her new seller client. “The blockade has given people a whole new perspective on where they want to live, and they have lost their families.”

The Allentown, Pennsylvania region — New Jersey and NJ hotmarkets looking for a more affordable area — said the list excludes contracted homes from a very low level to 30 in early May. % Increased. That data.

Tim Tepes, president of the Greater Lehigh Valley Realtors Group, said many locals are tempted to sell and move to cheaper locations elsewhere in the state because homes are far above the asking price. It states. He said the house was quickly finding a buyer, even when the new list was growing.

McLaughlin said US home price growth is expected to slow to less than 10% by the end of the year. Demand could cool as buyers cut prices, especially if borrowing costs start to rise, he said. The Federal Reserve Board has announced this week that it expects two rate hikes by the end of 2023. This is earlier than most people think.

“The same forces that lead to new supplies may be the same forces that reduce the ability of homebuyers to remain interested in buying a home,” McLaughlin said. “It’s mainly a price increase.”

The new home market may also be easing. Homebuilders have soared prices because demand is too high to keep up. Ariwolf, chief economist at Zonda, a homebuilding data provider and consultancy, said some buyers are now feeling a bit of a sticker shock.

About 40% of builders surveyed by Zonda in May cited buyer hesitation as an issue, up from about 20% last month. As a result, the new home market has changed from “unbearably” hot to just hot, she said.

In Austin, Texas, agents contact homeowners by phone and text to tell them how much they can make by selling. Alex Wright, an agent at Local Life Realty, says the message is beginning to resonate.

Wright, who grew up in the area, says his childhood friend’s best friend’s parents are now in their 60s and want to move to the Midwest to get closer to their grandmother. Austin is no longer in the same place.

She said the prices were high and she had everything from tacos to coffee, not to mention homes.

Wright says her buyers welcome more options, but winning a home is still a challenge.

“It’s still a crazy competition,” she said.

Copyright 2021 Tribune Content Agency.

The tight US housing market is unleashed as sellers are ready to monetize | News

Source link The tight US housing market is unleashed as sellers are ready to monetize | News

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