Housing Demand is Extremely Hot

Last week Redfin, a real estate brokerage, reported that for the fourth consecutive month, over half of Redfin home offers faced a bidding war.  Competition was strongest in coastal areas like in San Diego where a whopping 65% of offers had a bidding war. 

Redfin Chief Economist Daryl Fairweather said, “The pandemic-driven trend of people moving away from densely packed cities toward more affordable and spacious regions means homes in places like Sacramento and Phoenix are becoming nearly as competitive as the Bay Area.”  He also said, “Low mortgage rates are motivating homebuyers who are thinking of moving to go through with it. I expect competition to continue picking up in more affordable parts of the country.”  Also noted in this report was that bidding wars occurred mostly in single family homes followed by townhomes and then condos.

Some more interesting data by way of the National Association of Realtors (NAR) showed that 68% of 597,000 existing home sales in July were on the market for less than 30 days.  On top of that, first-time home buyers made up more than one third of these sales.

It is evident that the housing market has remained scorching hot and will continue to be as long as demand for homes continues to be as strong as it is currently.

Call your Advisors Mortgage Loan Officer today to discuss the current market in more detail and to learn what you qualify for.