This Week in Real Estate
According
to ATTOM Data Solutions First Quarter 2021 U.S. Home Sales Report, which was
released This Week in Real Estate, home
sellers average profit was up 26% compared to the first quarter last year. The
average profit represented a 34.2 percent return on investment compared to the
original purchase price. Below are a
few newsworthy events from the fourth week of April that influence our business:
* Pending Home
Sales in U.S. Grow 2% in March. According to the National Association of Realtors, U.S.
pending home sales increased in March 2021, snapping two consecutive months of
declines. All but one of the four major U.S. regions experienced
month-over-month gains in March, while each area recorded year-over-year
growth. The Pending Home Sales Index, a forward-looking indicator of home sales
based on contract signings, rose 1.9% to 111.3 in March. Year-over-year,
contract signings jumped 23.3%. "The
increase in pending sales transactions for the month of March is indicative of
high housing demand," said Lawrence Yun, NAR's chief economist. "With
mortgage rates still very close to record lows and a solid job recovery
underway, demand will likely remain high.” Existing-home sales are projected to
rise by 10% in 2021 to reach 6.2 million in 2021, while the median home price
is anticipated to increase by 9% in 2021 to $323,900. The Pending Home Sales
Index in the West grew 2.9% in March to 94.5, up 29.8% from a year prior.
* Mortgage Rates Remain Under 3% for
Another Week. Home buyers had another opportunity to snag ultra-low rates this
week. The 30-year fixed-rate mortgage averaged 2.98%, Freddie Mac reports. “In
light of the rising COVID-19 caseloads globally, U.S. Treasury yields stopped
moving up a month ago and have remained within a narrow range as the market
digests incoming economic data,” says Sam Khater, Freddie Mac’s chief
economist. “The good news is that with rates under 3%, refinancing continues to
be attractive for many borrowers who financed before 2020. The National
Association of REALTORS estimates mortgage rates to average 3.2% by the end of
the year.
Full Story…
https://magazine.realtor/daily-news/2021/04/30/mortgage-rates-remain-under-3-for-another-week
* U.S. Home Seller
Profits Dip Slightly in First Quarter of 2021 But Remain Higher Than Year Ago. ATTOM
Data Solutions released its first quarter 2021 U.S. Home Sales Report on
Thursday, which shows that profits for home
sellers nationwide were again up on an annual basis in yet another sign of how
the housing market is fending off economic damage caused by the Coronavirus
pandemic. The report reveals that
the typical first-quarter 2021 home sale in the United States generated a
profit of $70,050. That was down from $75,750 in the fourth quarter of 2020 but
still up 26 percent from $55,750 in the first quarter of 2020. The typical
$70,050 home-sale profit represented a 34.2 percent return on investment
compared to the original purchase price - down from 37.1 percent in the fourth
quarter of 2020 but still higher than the 30.8 percent level recorded a year
ago.
Have a productive week.
Jason
Comments
Post a Comment