June 2020 Housing Recap: A Record-Breaking Rebound
2020 has been a wild ride for the housing market but it appears a strong rebound is underway. The final June numbers are in and up – and according to Windermere chief economist Matthew Gardner, “Housing will be a leader and not a laggard as we move through the balance of this year and into 2021.” Check out our in-depth market recap on the New Western blog.
Home Affordability At Its Highest Since 2016
Thanks to all-time low mortgage rates, the average-priced home is the most affordable it’s been since late 2016, according to Black Knight’s latest mortgage monitor report. All of the 25 largest markets in the country saw their highest affordability levels in over two years, and in many places, affordability is the strongest it’s been in more than a decade.
Almost Half of Recent Homebuyers Made an Offer Sight-Unseen
According to a Redfin survey, 45% of people who bought a home in the past year made an offer on a property that they hadn’t seen in person. Redfin chief economist Daryl Fairweather noted “The pandemic has changed the way many people view homes, and on top of that, the market is highly competitive. If you aren’t using this strategy, another buyer who is could beat you to the punch.”
Housing Share of GDP Climbs to 13-Year High
In a recent article, the National Association of Home Builders predicted housing gains will continue “as the consequences of the virus crisis are likely to lead to a reversal for declining home size trends and a greater need for additional home office space.” They also expect home building and remodeling to have demand-side potential that can help fuel a recovery in the labor market.