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?

Mortgage Tech Virtual Demo Day

Tune in to our live Virtual Demo Day on December 1st at 10am CT to experience demos from the most innovative tech companies in the Servicing, Audit and Post-Close space.

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.

Real Estate

Pending home sales rebound after 17 months of consecutive declines

The PHSI in West region increases a whopping 5.4% in June

The nation’s healthy economic environment drove an increase in pending home sales, pushing the index forward 2.8% in June, according to the latest report from the National Association of Realtors.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, increased to 108.3 in June, rising from May’s 105.4.

Contract signings compared to a year earlier grew 1.6%, ending a 17-month streak of annual declines, NAR said.

Additionally, the index revealed that activity in all four major regions improved as the PHSI in the Northeast, South, Midwest and West rose year over year.

These are the PHSI changes for each region:

  • Northeast: Increased 2.7 % to 94.5 and is 0.9% higher than June 2018
  • Midwest: Increased 3.3% to 103.6 and is 1.7% higher than June 2018
  • South: Increased 1.3% to 125.7 and is 1.4% higher than June 2018
  • West: Increased 5.4% to 96.8 and is 2.5% higher than June 2018

NAR’s Chief Economist Lawrence Yun said June’s 2.8% increase can be attributed to the nation’s current favorable conditions and predicted last month’s rise is likely the start of a positive trend for home sales.

Job growth is doing well, the stock market is near an all-time high and home values are consistently increasing,” Yun said. “When you combine that with the incredibly low mortgage rates, it is not surprising to now see two straight months of increases.”

However, Yun noted that although June’s contract signings indicate that while buyers are both enthusiastic about the market and of the potential wealth gain, homebuilders still need to increase inventory production.

“Homes are selling at a breakneck pace, in less than a month, on average, for existing homes and three months for newly constructed homes,” Yun said. “Furthermore, homeowners’ equity in real estate has doubled over the past six years to now nearly $16 trillion. But the number of potential buyers exceeds the number of homes available. We need to see sizable growth in inventory, particularly of entry-level homes, to assure wider access to homeownership.”

Most Popular Articles

FHFA: Government to back mortgages up to $970,800 in 2022

The FHFA today announced the baseline conforming loan limit for 2022 will be $647,200, an increase of 18%. In high-cost areas, the new ceiling loan limit will be $970,800.

Nov 30, 2021 By

Latest Articles

Zillow: Over half of our iBuying inventory is on the move

Zillow said Thursday that more than 50% of its remaining iBuying inventory “has sold, is under contract to sell or has reached agreement on disposition terms.”

Dec 02, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please