- Home sales increased +2% from pre-COVID levels for first time
- Mortgage rates hit ANOTHER record low at 2.98%
Is everything coming up roses in the housing market?
According to Redfin’s Sheharyar Bokhari, it looks like it. (By the way, Bokhari holds a PhD from MIT in Urban and Real Estate Studies.)
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Here are some of Bokhari’s nearly breathless insights into the housing market for the week of July 5:
- Home sales increased +2% from pre-pandemic levels
- Pending sales were up +10%
- Weekly average mortgage rates were 3.03% – 2 weeks later rates hit 2.98%!!!
- New listings came up to pre-pandemic levels for the third straight week DESPITE the fact that the number of homes for sale was -29% compared to last year
- Nearly 50% of homes that sold were on the market for two weeks or less
- Low interest rates and low inventory pushed up home sale prices +7% compared to last year
Redfin’s Rob Foos, a mortgage advisor, said, “A combination of rock-bottom rates plus pent-up purchase demand has resulted in the highest levels of purchase applications in about a decade.” The Redfin home-buying demand index has hit approximately +20% above pre-pandemic levels for seven consecutive weeks and mortgage purchase applications were up approximately +15% above pre-pandemic levels as well.
Despite there being more new listings on the market, data indicates listings were +1% over pre-pandemic averages for three consecutive weeks, potential buyers (and sellers) worry about there being houses to buy when they are ready to buy one. The result? More than 50% of Redfin offers are facing bidding wars. A Redfin agent in Seattle, Shoshana Godwin, Said, “We’re back to buyers waiving their rights to cancel the contract if something pops up during the inspection or they can’t get their loan approved.”
Such competition obviously results in rising home prices. The average sale price for the week ending July 5 was $310,000, an increase of +7% from last year. Asking prices for newly listed homes rose +16% from the same week last year to $324,900.
Thanks to Redfin.