Top markets for affordable renovated housing inventory

Despite the rapidly deteriorating affordability, there is some hope for homebuyers in the form of renovated homes: properties that have been rehabbed into move-in ready condition after being purchased at auction.

HousingWire Magazine: December 2021/ January 2022

AS WE ENTER A NEW YEAR, let’s look at some of the events that we can look forward to in 2022. But what about what’s next for the housing industry?

Back to the Future of Mortgage Lending

This webinar will be a discussion on understanding what’s to come in the future of mortgage lending by analyzing past trends in the industry, evolving consumer behaviors and demographics of the industry’s production capacity.

Logan Mohtashami on Omicron and pending home sales

In this episode of HousingWire Daily, Logan Mohtashami discusses how the new COVID variant, Omicron, will impact inflation and whether or not it will send mortgage rates lower.

Mortgage

Pending home sales surge again in February

Good news for the spring homebuying season

Pending home sales in February surged to their highest level since June 2013, continuing the record high set last month, according to the latest report from the National Association of Realtors.

This is good news for the industry as it heads into the spring homebuying season, especially given that 2015 is off to a bad start for housing in terms of housing starts, completions and permits. Existing home sales tumbled in January, and mortgage applications have been spiraling downward in February, giving away most of the gains made in January.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, grew 3.1% to 106.9 in February from a slight downward revision of 103.7 in January and is now 12% above February 2014 (95.4).

The index is at its highest level since June 2013 (109.4), has increased year-over-year for six consecutive months and is above 100 – considered an average level of activity – for the 10th consecutive month.

“Pending sales showed solid gains last month, driven by a steadily-improving labor market, mortgage rates hovering around 4% and the likelihood of more renters looking to hedge against increasing rents,” said Lawrence Yun, NAR chief economist.

“These factors bode well for the prospect of an uptick in sales in coming months. However, the underlying obstacle – especially for first-time buyers – continues to be the depressed level of homes available for sale.”

Growth in the Midwest and West worked to offset smaller declines in the Northeast and South.

“Several markets remain highly-competitive due to supply pressures, and Realtors are reporting severe shortages of move-in ready and available properties in lower price ranges,” Yun said. “The return of first-time buyers this year will depend on how quickly inventory shows up in the market.”

Looking across the nation, the PHSI in the Northeast fell 2.3% to 81.7 in February, but is 4.1% above a year ago. In the Midwest the index leaped 11.6% to 110.4 in February, and is now 13.8% above February 2014.  

Pending home sales in the South decreased 1.4% to an index of 120.2 in February, but is still 10.8% above last February.

In addition, the index in the West climbed 6.6% in February to 102.1 (highest since June 2013 at 111.4) and is now 18.3% above a year ago.

Most Popular Articles

Better.com lays off LOs, secures $750M cash injection

Digital mortgage lender Better.com is laying off 9% of its workforce ahead of a $750 million cash injection from financial backer SoftBank Group.

Dec 01, 2021 By

Latest Articles

What Omicron, bond market and jobs mean for housing

We often have two to three job reports per year that miss estimates badly. However, remember that we have over 10 million job openings.

Dec 03, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please