At the start of 2018 homebuyers were being highly-competitive in many US housing markets but things have changed. According to a new report from Redfin, there was competition for just 13% of offers written by its agents for buyers in January 2019, down from 53% a year earlier.
The 2018 Realtors Conference and Expo has highlighted some of the issues that are challenging the industry as we prepare for 2019. The event, organized by the National Association of Realtors, produced the annual Top Ten Impacts on Real Estate for 2018-2019, as named by the Counselors of Real Estate.
Source: The ten biggest issues for real estate now and in the future
Refinancing is no longer an option for 6.5 million homeowners as rates have picked up over the summer months. Since the start of 2018 there has been a 56% decrease in the number of homeowners who have a financial incentive to refinance – just 1.86 million – according to the September Mortgage Monitor Report from the data and analytics division of Black Knight Inc.
Source: Millions of homeowners have missed their chance to refinance
The market for newly-built homes for over 55s are facing various headwinds which have slightly weakened a measure of builder confidence. The National Association of Home Builders’ 55+ Housing Market Index was down in the third quarter of 2018 as all four of its components slipped.
Source: Builders confidence in the over 55s market weakened in Q3
The US housing market is starting to see an increase in supply in some markets but buyers are not necessarily in a hurry to take advantage of the extra choice. Markets posting rising inventories may not see sales follow as rising interest rates and high prices giving potential buyers cause for caution according to an analysis of 171 metros by Redfin.
Source: Small increase in supply but rising rates are slowing demand
The impact of rising mortgage rates is highlighted in a new report on the monthly cost of homeownership. The analysis by Zillow finds that higher rates are responsible for about two-thirds of the increase in buyers’ monthly mortgage payments compared with what those costs would have been a year ago had home values remained constant at their current level.
Source: Mortgage rates, home prices costing buyers an extra $1,416
When applying for a mortgage it is good to know your credit score and how that number can impact your ability to get approved for a mortgage. Your credit score is a big factor when it come to your mortgage.
You can now lock your interest rate while you shop for your new home. Even without a formal offer on a property, Lock & Shop gives you rate security with 60- or 90-day rate locks. If the rates improve as you shop, you can float down to the better rate.
Along with the Lock & Shop, you can submit an approval with conditions to make your offer strong in a competitive market.
Minimum credit score of 620 required.
The growing US economy is making homebuyers feel more confident in splashing the big bucks for a home. The luxury segment of the housing market – the top 5% of all residential sales – has gained by double-digit percentages in 19 major markets and sales at $1 million or more are up 13% year-over-year.
Source: More people want to buy a luxury home as economy grows