Millennials Underestimate Down Payment Needs – According to a recent survey by Point2Homes, the pandemic is motivating more millennials to feel like they’re finally ready to buy a home. But do they have the savings to do it? Seventy-four percent of millennials, ages 25 to 40, say they are interested in purchasing a home in the next 12 months. However, 88% say they have significantly less savings than the average national down payment amount, which is $62,600, according to the study. Fourteen percent of millennials surveyed admit they have nothing saved up for a home. Certainly, down payment programs exist for those in need of help. But whether these programs will be sufficient for home shoppers whose savings are so tight is doubtful, financial experts say. Down payments of 0% and 5% are possible with a home purchase, but they tend to come at higher costs.
Source and link to the full article: “Home Within a Year, But Saving Takes Up to 10 Years,” Point2Homes (Sept. 29, 2020)
August Closings: Properties Averaged 3 Offers – Based on the August REALTORS® Confidence Index Survey, the frenzy in the housing market continued in August as buyer competition remained elevated. Properties that closed in August received an average of three offers. The report is based on a survey of about 4,000 REALTORS® about their latest real estate transactions. Further evidence that the housing market is going strong: Buyer foot traffic to listings remains high. The REALTORS® Buyer Traffic Index increased to 76, any value above 50 means stronger buyer traffic compared to a year ago. All states except North Dakota and Illinois reported higher buyer traffic.
Source and link to the full article: “Buyer Competition Heats Up: More Buyer Offers and Client Tours in August 2020,” National Association of REALTORS® Economists’ Outlook blog (Sept. 24, 2020)
Buying Sprees Continue, Contract Signings Surge to Record High – According to the National Association of REALTORS®, pending home sales are exceeding pre-pandemic levels and defying forecasts. August marked the fourth consecutive month of escalating sales contract activity, with all four major regions of the U.S. posting higher year-over-year pending home sales numbers. The NAR’s Pending Home Sales Index, increased 8.8% in August to a record high of 132.8. An index reading of 100 is equal to the level of contract activity in 2001. Contract signings are now 24.2% higher than a year ago. “Tremendously low mortgage rates, below 3%, have again helped pending home sales climb in August,” says Lawrence Yun, NAR’s chief economist. “Additionally, the Fed intends to hold its short-term funds rates near 0% for the foreseeable future, which should, in the absence of inflationary pressure, keep mortgage rates low, and that will undoubtedly aid home buyers continuing to enter the marketplace.”
Source and link to the full article: National Association of REALTORS®
Senior Buyers Are Reemerging in the Housing Market – Based on a new report from John Burns Real Estate Consulting, shows as long as the proper health precautions are in place, seniors say, they are willing to resume home searches and purchases. Several age-qualified communities nationwide are reporting particularly strong home sales in August and September, the report says. “While the first-time and move-up buyers have clearly been the headlines of the housing market resurgence, the active adult buyer is starting to reemerge,” said Ken Perlman and Lesley Deutch, managing principals at John Burns Real Estate Consulting. Indeed, older Americans are a key component of housing demand. The 65-and-older population is predicted to increase by 17 million over the next decade, according to industry observers. “They are wealthy with large homes they can sell,” Perlman and Deutch write. Also, the rising stock market and surging housing market recovery are giving them extra reassurance to move forward with home purchases.
Source and link to the full article: “The Light: The Active Adult Buyer Is Back!” John Burns Real Estate Consulting (Sept. 25, 2020)