NAR: Housing Market to Normalize in 2022
Home sales will outperform pre-pandemic values in 2022, citing more inventory in the coming months due to the conclusion of the mortgage forbearance program, according to the NAR.
Homebuilder Confidence Increases
The NAHB Monthly Confidence Index rose three points to 83 in November, which is the highest level for the index since May and the third consecutive month increase even amid supply chain challenges.
New Home Constructions Highest in the South
A total of 1.55 million housing starts in September 2021 are in Georgia and Florida, where construction starts are booming. Ten of the top 15 fastest-growing cities are Southern due to their population growth, fewer zoning restrictions, and more land available according to the U.S. Census Bureau.
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Higher Mortgage Rates Boost Buyer FOMO
Mortgage rates were down slightly in early November, and the share of homes sold in one week rose to 33%, according to Redfin. The fear of missing out (FOMO) is more relevant today for homebuyers who didn’t get a home last year when mortgage payments skyrocketed by 15%.
Home Prices Climb across US Metros
The median sales price of single-family existing homes rose 16% in 3Q, an increase of $50,300, according to the NAR. All four major regions of the U.S. posted double-digit YoY gains.
Single-family Home Rent Rise
Rent growth is already in the double digits according to CoreLogic. It rose to 10.2% YoY from last year’s 2.6%.
Rent Payments Added to Underwriting Process
The Chief Executive Officer of Fannie Mae announced that the inclusion of rent payments is meant to expand financing opportunities for people with limited credit histories and help renters who otherwise thought they’d never be able to achieve homeownership.
America’s Never-ending Housing Boom Winners
Home Depot, Lowe’s, Williams-Sonoma and Walmart all reported strong sales results in the third quarter as a result of rising consumer spending despite COVID-19 challenges, inflation and global supply chain shocks that have impacted major shipping delays.
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