News

Housing Market is Strong

Father and daughter (18 months) walking up steps to house

The country is still struggling with COVID-19, however the real estate market is resilient. Three reports were recently released showing the housing market is growing.

1. Ivy Zelman’s Real Estate Broker Survey

This survey showed that buyer demand is high:

“This month’s overall homebuyer demand rating…was easily the strongest sequential gain in our survey history…Strength continues to be led by the entry-level…While high-end demand is less robust in an absolute sense, there has also been relative improvement, with contacts attributing incremental improvement to the stock market’s rebound, record low mortgage rates and luxury customers trading out of high-priced cities.”

2. The National Association of Home Builders Housing Market Index

This index showed the builder confidence has returned to pre-pandemic levels:

“In a strong signal that the housing market is ready to lead a post-COVID economic recovery, builder confidence in the market for newly-built single-family homes jumped 14 points to 72 in July, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI now stands at the solid pre-pandemic reading in March before the outbreak affected much of the nation.”

3. The realtor.com Housing Market Recovery Index

This index averages 4 components of the housing market and track each of them.

  1. Housing Demand – Growth in online search activity
  2. Home Price – Asking price growth
  3. Housing Supply – Growth of new listings on the market
  4. Pace of Sales – Difference in how long listings are on the market

It then compares the current status “to the last week of January 2020 market trend, as a baseline for pre-COVID market growth. The overall index is set to 100 in this baseline period. The higher a market’s index value, the higher its recovery and vice versa.”

The results came in at 101.

“The U.S. Housing Market has recovered from the immediate disruption caused by the COVID pandemic and returned to January 2020 growth levels.”

Bottom Line

The housing market is strong and resilient. If you are thinking of selling – now is the time. Take advantage of the high buyer demand. If you are thinking of buying – the mortgage interest rates are at historic lows.

Call South Florida Real Estate Experts at Prestige Waterfront Realty at 954-830-7000. Let us help you with your real estate needs!

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