New research shows that despite the ongoing risks of the pandemic, pent-up housing demand during state shutdowns is about to be unleashed as many coronavirus-related restrictions to daily life are lifted or relaxed and consumers return to the real estate market, says Lawrence Yun, chief economist for the National Association of REALTORS®. In recent video, Yun says home sales are bouncing back from their bottom during the COVID-19 pandemic
Looking forward, the market is ripe for robust activity. Mortgage applications are defying economists’ expectations, rising 54% since April, the Mortgage Bankers Association reported last week. Mortgage rates for 30-year loans have broken through record lows three times in as many months, making borrowing costs favorable for prospective buyers who are looking to get off the fence and purchase. Meanwhile, home prices continue to rise, Yun predicts “10% – 15% increase in the number of home sold and a 3%-5% increase in home prices”.
Yun points to the current data also known as Market Trends to anticipate what could be coming in the near future as states begin to reopen. “There is a shortage of inventory available for buyers, while interest rates are still at historic lows, this creates an environment that could produce multiple offers and we could see sales prices close or higher to pre-pandemic sales prices” Yun stated “Home sales are expected to rise as restrictions begin to lift across the country”
The next Fed meeting will take place on June 10.
We will continue to monitor the market and the indicators and keep you informed! For the most up to date information and how it effects your individual scenario, give us a call! We are here to help!
*Graphs should the average DOM or days on market for each of the 3 counties: Larimer, Weld and Boulder and well as a large rise in properties that are under contract. It’s an excellent time to buy right now rates so low and a great time to sell with the low inventory measures*