As we near the end of the year, more homeowners are realizing the benefits of today’s sellers’ market. Record-breaking home price appreciation, growing equity, low inventory, and competitive mortgage rates are motivating homeowners to make a move that addresses their changing lifestyles.
In fact, recent data from realtor.com shows a larger share of homeowners is planning to list their houses this winter. So, that means more homes are about to hit the market, which will lead to more choices for buyers too.
According to George Ratiu, Manager of Economic Research at realtor.com:
“The pandemic has delayed plans for many Americans, and homeowners looking to move on to the next stage of life are no exception. Recent survey
Last week, lender Freddie Mac released their Primary Mortgage Market Survey, which shows the recent 30-year fixed mortgage rate. The rate was at 3.01%, the first time in three months since it was over 3%. Sam Khater, Chief Economist at Freddie Mac, explained in a press release:
"Mortgage rates rose across all loan types this week as the 10-year U.S. Treasury yield reached its highest point since June.”
The reason Khater mentions the 10-year U.S. Treasury yield is because there has been a very strong relationship between the yield and the 30-year mortgage rate over the last five decades.
Here’s a graph showing that relationship:
The relationship has also been consistent throughout 2021 as evidenced by this graph:
This year's strong sellers’ market is due to the high demand to buy and low supply of inventory.
Low mortgage rates and generational trends have created an increased demand for homes. At the moment, the slower pace of new home construction and homeowners staying in their homes longer have both led to today’s low supply.
If you’re thinking of selling, contact The Aaronson Group at 949-388-5194 or email us at info@previewochomes.com and we can help you take advantage of today’s housing market and understand your current living area.
On behalf of the buyer, The Aaronson Group has opened escrow on 26972 Escondido Lane, Mission Viejo Orange County, California. (MLS® #OC21224467)
Impossible to find... A single-level home, with panoramic views, sparkling pool, and 3 car garage. Located in prestigious mission ridge this spacious 2742 sq ft 3 bed + office home has a 10K+ sq ft. lot and has OWNER OWNED SOLAR, has been RE-PIPED and NEW AC/HVAC system in 2020! Located at the end of a cul-de-sac, this home has it all...
Hardwood floors with upgraded baseboards, crown molding, formal living room with fireplace, formal dining room, spacious family room, and upgraded kitchen with dining nook, granite counters, island, stainless steel appliances, and GE monogram 6 burner
There are many unanswered questions about home prices right now. How much have prices risen over the past 12 months? What’s happening with home values right now? What’s projected for next year? Let's take a look at the answers to all three of these questions.
How much have home values appreciated over the last 12 months?
According to the latest home price index from CoreLogic, home values have increased by 18.1% compared to this time last year. Additionally, prices have gone up at an accelerated pace for each of the last eight months (see graph below):
The increase in the rate of appreciation that’s shown by CoreLogic coincides with data from the other two main home price indices: the FHFA home price index and the
Recently, the American Institute of Architects released their AIA Home Design Trends Survey results for the third quarter of 2021. The survey revealed the following:
70% of respondents want more outdoor living space
69% of respondents want a home office (48% wanted multiple offices)
46% of respondents want a multi-function room/flexible space
42% of respondents want an au pair/in-law suite
39% of respondents want an exercise room/yoga space
If you currently own a home you have two options: renovate your current house or buy a home that has what you desire. The decision you make could be determined by factors like:
