Bidding Wars Are Back In Housing Market Stung By Pandemic
According to a recent Bloomberg article, although “sales are way down, the lack of inventory has propped up prices and led to bidding wars.” Due to the lack of supply, roughly 40% of homebuyers that Redfin agents worked with had to face other offers when they tried to purchase a home.
The rate was even higher in cities like San Francisco, Boston, and even Fort Worth, Texas, where more than 60% of properties the company’s clients bid on received multiple offers.
The Housing Market’s Road To Recovery In Four Charts
Redfin reported last week that home-buying demand is nearly 17% higher than it was before the coronavirus pandemic as states ease stay-at-home restrictions and businesses begin to reopen. Take a look at four charts they’ve pulled together that paint the picture of a housing recovery.
Realtor.com 2020 Housing Market Predictions
Earlier this month, Realtor.com released a COVID-19 update to their 2020 National Housing Forecast. They predict “home sales to rebound as virus-concerns wane, but a later dip in sales as a result of a combination of a future rise in infections and lingering unemployment will lead to a see-saw recovery with ups and downs.”
They see home prices growing by a modest 1.1 percent and mortgage rates sliding to under 3 percent by the end of the year.
Newly Pending Sales Up Almost 50% From April
Zillow’s April 2020 Market Report is out and there are positive signs for investors. Newly pending sales saw a 50% increase from April and in four large metros — Cleveland, Cincinnati, Houston and Dallas-Fort Worth, newly pending sales were up from the same time last year. While home listings continue to bounce back, inventory still remains about 20% below last year’s already low levels. On the rental front, annual rent growth slowed in April but remains up from a year go. Rent growth went from 3.4% in March to 2.9% in April with a typical monthly rent in the U.S. of $1,594.