User ID
Password

 

 

Homebuyers
Source
American Shipper
Post Date
01/21/2022

Buckle up for another brutal spring housing market Its usually around this time of year, with the holiday season firmly in the rearview mirror, that homebuyers and sellers alike to make their way back into the market. That will continue to pick up each week until March arrives. At that point, the industrys busy season—known as the spring real estate market—will be off to the races.
But this year there is more unease than excitement coming from the home shopper side of the equation. For one thing, last years spring housing market, which was arguably the fiercest in history, is still seared into the collective memories of unsuccessful 2021 home shoppers. To understand how far the deck was stacked against buyers last year, just look at the data. The number of homes for sale last spring hit the lowest level in more than 40 years. Bidding wars hit an all-time high—with 72% of homes getting multiple offers in April 2021. And that frenzy saw home appreciation climb to the highest level in tabulated history.
That raises a question: Should homebuyers expect to find a spring housing market in 2022 that is frilier when compared with 2021? After all, the rate of home price growth over the past year—up 19.1% between October 2020 and October 2021—just cant be sustained forever.
Housing supply
To get an indication of what the housing market will look like during the early months of 2021, we looked at the one metric housing economists repeatedly told Fortune last year to watch heading into the spring market: housing inventory. At the height of the spring 2021 bidding war bonanza, the number of homes for sale was 43% below pre-pandemic levels. Given that the demand side of the market is unlikely to back off much—theres simply too many millennials aging into their first-home buying years—the supply side (a.k.a. inventory) will dictate what the spring 2022 housing market will look like.
To be blunt, the latest reading of housing inventory levels doesnt look good for would-be homebuyers. As of December, there were just 1 million homes listed for sale on Zillow. Thats down 17.5% from December 2020, and down 37.8% from December 2019, when there were nearly 1.7 million homes for sale. This means the housing market is tighter right now than it was heading into the hypercompetitive 2021 spring housing market.
Simply put: Home shoppers should expect more heartache—not relief.
As the 2021 spring market came to a conclusion last year, industry insiders hoped inventory levels would to rise. Through the summer and fall, inventory did finally to tick up a bit (see the t above). The theory was that as vaccines rolled out, more elderly homeowners who were cautious about moving during the pandemic would finally put their homes up for sale. Economists also predicted the September 2021 winding down of the forbearance program for homeowners negatively impacted by the pandemic would see more homes come on to the market. While the number of homes listed for sale did rise, it hasnt been enough to make the market frily for homebuyers.
This lack of inventory isnt just clustered into a handful of housing markets, either. Among the 327 housing markets tracked by Zillow, 254 have inventory levels that are down by more than 30% between December 2019 and December 2021. In 54 housing markets, including places like Miami and Fort Collins, Colo., housing inventory is still down by over 50% from pre-pandemic levels.
Interest rates
There is one big wild card right now.
The inflation-concerned Federal Reserve is expected to increase rates several times in 2022. That is already pushing mortgage rates higher. As of Thursday, the average 30-year fixed mortgage rate has hit 3.45%. Thats up from 3.1% last month, and a hefty bounce from the 2.65% rate in January 2021. Rising mortgage rates would lock some homebuyers out of the market and could put downward pressure on home price growth.
But in the short term, rising mortgage rates could actually make the housing market even more competitive. Ali Wolf, chief economist at Zonda, a housing market research firm, tells Fortune that home shoppers—who could see this as their last chance to snag pandemic-spurred low mortgage rates—might to pour into the housing market in the coming weeks. Of course, a rush of homebuyers into a market with already depleted levels of inventory would be a perfect storm for another spike in bidding wars.


Title
Source
Post Date
Visit
News.. American Shipper 05/17/2022
12
Ocean Transportation Intermediary License Revocations.. American Shipper 05/16/2022
16
Southwest is changing its in-flight experiences.. American Shipper 05/16/2022
15
7 business class travel tips and tricks from one firs.. American Shipper 05/16/2022
18
$27 for Beer? Port Authority Cracking Down on Prices .. American Shipper 05/16/2022
17
Port of Long Beach Continues Record-Setting Streak an.. American Shipper 05/16/2022
14
CMA CGM offers cash incentive for returning container.. American Shipper 05/16/2022
9
NEW YORK STATE TO GIVE RESIDENTS FREE AIR CONDITIONER.. American Shipper 05/12/2022
34
Is an to the container industry upswing looming on t.. American Shipper 05/12/2022
33
Wan Hai pays $850,000 fine to settle FMC detention ca.. American Shipper 05/12/2022
32
Page : 1   2   3   4   5        [Next 5 Page]  Last Page : 75 ( 1 of 75  Total Pages )

 

 

 

Brilliant Group Logistics INC.
159 N. Central Ave. Valley stream, NY 11580
Tel : (516) 599-2406 Fax : (516) 599-0528