Here are the topics that everyone is discussing in today’s real estate market.
Today we’re discussing four different topics that all connect to tell the story of our real estate market:
1. Forbearance/foreclosures. At 0:15 in the video above, you’ll see a breakdown of all the homeowners in forbearance and where they are in the process. More than 50% of them are caught back up with their payments, and only 1.8% of properties are in short sale or foreclosure right now.
2. Mortgage rates. At 1:05 in the video above, you’ll see a graph showing how mortgage rates have changed since January 2020. As you’ll see, there was a steady decline until about February of this year, then rates have picked up and now sit around 3%. This is still a much lower figure than we had at this time last year, so there is still a great opportunity for buyers to lock in their rate or homeowners to refinance to a lower one.
3. Inventory. At 1:30 in the video above, you’ll see how existing homes have been trending since September 2019. Inventory dipped last January, rose again in the summer, but has since dropped down to less than two months. This is great news for sellers, but they also need to have a strategy to buy in a market with this little inventory.
4. Overvalued homes? According to Mark Fleming, the Chief Economist at First American, they’re not. He said, “Nationally, house-buying power continues to exceed the median sale price, and that implies housing is not overvalued today.” In certain markets, that’s true, but in certain markets it isn’t. Reach out to me to figure out where values are in your neighborhood.
If you have any questions for me about these or other real estate topics, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.