This Week in Real Estate
Good Morning!
ATTOM released its Q1 2022 Home Equity Report This Week in
Real Estate finding 44.9 percent of mortgaged residential properties
are considered equity-rich, up from 31.9 percent in the first quarter of 2021.
According to OJO Labs, 52 percent of homes in the top 50 metro areas sold for
above the list price in April, up from 42 percent a year earlier. Below are a
few newsworthy events from the second week of May that influence our
business:
* 52% of Homes Sold
Above List Price in April. Competition abounds in the real estate
market, and buyers are continuing to bid up home prices this
spring. Fifty-two percent of homes sold above the list price in April, up
from 45% in March and from 42% a year earlier, according to OJO Labs, a real
estate technology company. Seattle tied for the fourth most-competitive metro
area with 66% of homes sold above the list price and at an average of
$58,275.20 higher (2nd highest). Portland, Washington D.C., Salt
Lake City, Richmond, and Columbus all saw 60% of their homes sell above the
list price in April and Portland at an average of $20,561.14 (8th
highest) – see attached.
Full
Story… https://magazine.realtor/daily-news/2022/05/13/52-of-homes-sold-above-list-price-in-april
* Average U.S.
Mortgage Interest Rate Rises to 5.53%, Applications up? The
average interest rate on the most popular U.S. home loan rose to its highest
level since 2009 last week and demand for mortgages jumped for a second
straight week despite the rising costs, Mortgage Bankers Association data
showed on Wednesday. The average contract rate on a 30-year fixed-rate mortgage
increased to 5.53% in the week ended May 6 from 5.36% a week earlier, the MBA
survey showed. Mortgage applications rose last week for the second week in a
row. The MBA said its Purchase Composite Index, a measure of all mortgage loan
applications for purchase of a single family home, increased 4.5% from a week
earlier. However, this was still below the levels seen just a month ago and
almost 8% lower than the same week one year ago. The housing market, flashing
signs of overheating over the past two years, is seen as a particularly
rate-sensitive sector and Fed policymakers are keen to sap some of its current
double digit annual price growth. Whether they can cool the market as much as
they hope remains to be seen, with price growth fueled by record-low housing
stock, unusually high household savings, an extremely tight job market and
increased worker mobility.
Full Story… https://www.reuters.com/world/us/average-us-mortgage-interest-rate-rises-553-applications-up-2022-05-11/
* Homeowner Equity
Grows Again Across U.S. in First Quarter. ATTOM
released its first quarter 2022 U.S. Home Equity & Under Water Report
Thursday, which shows that 44.9 percent of mortgaged residential properties in
the United States were considered equity-rich in the first quarter, meaning
that the estimated market value is greater than 50 percent of the loan balances
secured by those properties. The portion of mortgaged homes that were
equity-rich in the first quarter of 2022 inched close to half, up from 41.9
percent in the fourth quarter of 2021 and from 31.9 percent in the first quarter
of 2021. “Homeowners continue to benefit from rising home prices,” said Rick
Sharga, executive vice president of market intelligence for ATTOM. “Record
levels of home equity provide financial security for millions of families, and
minimize the chance of another housing market crash like the one we saw in
2008. Across the country, 45 states saw
equity-rich levels increase from the fourth quarter of 2021 to the first
quarter of 2022. Year over year, equity-rich levels rose in 48 states. These latest equity trends came as the decade-long
U.S. housing market boom continued from late 2021 into early 2022.
Have a productive week.
Jason
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