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W hile open houses have
gone down and 3D or
virtual home tours have
gone up, homes that were
on the market prior to coronavirus
striking the market have fallen off.
In the midst of record-high
unemployment claims and economic
uncertainty, supply is declining now
more than ever, according to a report
from Redfin, as homeowners are
staying put and retracting listings.
There was a 148% year-over-year
increase in homes being delisted at the
end of March, coming to a total of
28,140 homes pulled off the market, the
report from Redfin said.
During this period, there were 58,366
new home listings, marking a 33% drop
from the year prior. What about homes
that remained on the market? They’re
just being listed for less. According to
Redfin, the median asking price for
newly-listed homes that week was
$309,000, which is $21,000 lower than
the prior week. Pending home sales also
fell 42% from the year prior....
Source: HousingWire
W hile our government
officials are talking
about re-opening at least
parts of our economy,
we are all wondering what that will
actually mean. There is no doubt that
we cannot flip a light switch and then
get people to rush out and start
partying in the streets.
Not only could we not get our
populace to do that, but it would not be
advisable for this to take place. We are
obviously talking about some sort of
staggered opening.
What does that mean? Well, certain
rural counties could open up right
away. Dense cities with a high
percentage of cases are not likely to
open. Certain industries may open in
different ways.
For example, sports are being
considered in empty stadiums and
arenas -- without fans. Perhaps people
will have to get tested before they
board an airline flight (assuming we
have a ten-minute test). We will call
this the new normal.
Thus, the question is not just -- when
will the economy open up? It is also --
what will the new normal look like and
how long will the new normal exist?
Again, we refer back to the medical
part of the equation. If we have an
effective vaccine in place and perhaps
even an effective drug to limit the
effects of the virus, the new normal
will be gone much quicker.
The answer to these questions will tell
us not only how long the economy will
slump, but how long it will take to
recover. We believe we will be asking
these questions for quite some time..
What Will Be The New Normal?
COVID-Reaction? Less Listings
S heltering in place could have an
unexpected benefit to the
housing market. “Now more
than ever you realize what your
house is like, some of things are great
and some of the things are not so great,”
said Jeff Kottmeier, a market research
adviser for John Burns Real Estate
Consulting. “People are spending a lot
more time in their houses and thinking,
‘Okay, if I can trade up for something
newer, something bigger, something
different, there’s that possibility.’ They
are saying they want a new home and
they start looking online.”
Some buyers who have been frustrated
by a lack of properties for sale are
throwing caution aside in hopes of
snagging a home while other buyers are
sidelined. “We still have the underlying
problems we had before, which is not
enough homes for people to buy and
we’re not building enough homes,” said
Bonnie Casper, a real estate agent in the
Washington DC market. “Those haven’t
gone away. But if the buyer pool has
shrunk, that does give a buyer a bigger
opportunity.”
Real estate agents are turning to
technology to replace the in-person
experience. The number of 3-D home
tours created on Zillow went up
326 percent in late March....
Source: The Washington Post
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Staying Home… And Assessing?
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Suzanne Smith HNB Mortgage
2101 W. Wadley Ste.36 Midland TX 79705
432-683-0081 [email protected]
NMLS # 192813 Branch/Company 226999/205935
April 2018
Selected Interest Rates
April 23, 2020 30 Year Mortgages——–3.33%
2019 High (Jan 3)-—–—–4.51%
2019 Low (Sept 5)———3.49%
15 Year Mortgages——-2.86%
5/1 Hybrid ARMs——–—–3.28%
10 Year Treasuries—–—–0.61%
Sources—Fed Reserve, Freddie Mac Note: Average rates do not include fees and points. Information is provided for indicating trends only and should not be used for comparison
Did You Know…
A survey of 1,013 Americans was conducted by Crediful which found that 28.4 percent of those surveyed would be putting their stimulus check towards rent or mortgage. "Housing payments are a big cost, and it’s one that a person would be looking to maintain. We have seen proposals for rent strikes and calls for delayed payments from different cities and states, so we knew this would be a pressing issue,” said Joey Morris, a project manager working for Crediful, according to Yahoo Finance.
Source: Creditful
May 2020
