Talk about a strange summer. Between the continued threat of the novel coronavirus, a wobbly economy, and layoffs happening left and right, it’s no surprise that many who may have hoped to sell their home this season are wondering whether to put those plans on hold—or they’ve already thrown in the towel.
Such hesitancy is understandable. Yet the irony is that, after closely examining the current housing market conditions, many real estate experts believe this summer could be one of the best times to sell a home in years.
-Mortgage applications to purchase a home rose 5% for the week and were a remarkable 33% higher than a year ago.
-Home price gains continue to accelerate, so low mortgage rates are giving buyers much-needed help.
More than 75% of homeowners with tappable equity have mortgage rates above 3.5%, Black Knight says
Tappable home equity, meaning the equity homeowners could borrow against while leaving a 20% buffer, rose to a record $6.5 trillion in the first quarter, Black Knight said in a report on Monday.
More than 75% of homeowners with tappable equity have interest rates above 3.5%, the report said. With rates currently near 3%, the amount they would save each monthly likely would outweigh the cost of the transaction, the report said.
Fannie Mae’s Home Purchase Sentiment Index, a composite index designed to track consumers’ housing-related attitudes, intentions and perceptions, increased nine points in June to 76.5. Although the HPSI is down 15 points year-over-year, June’s gain marked the second rise in HPSI since April’s almost record low.
According to the report, 61% of Americans now believe it is a good time to buy a home – an increase of 9 percentage points from May’s 52%. The share of respondents who say it is a good time to sell also increased to 41% from 32% the month prior.
Although the smallest gap between Black and white homeownership is still more than 20 points
According to the Census Bureau, in the 2000s the Black homeownership rate was 46.3%, compared to a Hispanic homeownership rate of 45.7% and a white homeownership rate of 71.3%. However, the Hispanic homeownership rate has gained during the intervening years, to 48.9% in the first quarter of 2020.
Factors that contribute to the lack of Black homeownership include redlining, gentrification and student loan debt.
With COVID-19 infections in the U.S. surging above 3 million, jobs recovery could be stymied
The U.S. mortgage forbearance rate fell to 8.39% in the last week of June, down from 8.47% a week earlier, as businesses reopened and the jobs market improved, according to a report on Tuesday from the Mortgage Bankers Association. But will it hold?
Web traffic to for-sale listings keeps rising
Zillow announced Tuesday morning that it would resume buying homes via Zillow Offers in five more markets, making 20 out of its 24 markets operational again since pausing the service due to COVID-19.
Home sellers in Los Angeles; Riverside, California; Minneapolis; Cincinnati; and Orlando, Florida can once again sell their homes directly to Zillow Offers.
About a month ago, iBuying resumed in Atlanta; Dallas; San Antonio; Austin, San Diego and Sacramento, California.
There are four sets of mindsets that can affect success. Having one of the following mindsets over the other can lead to “enhanced success,” says Gottfredson.
Thanks for reading, and be well.