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.

Real Estate

Bidding wars – the scourge of buyers – slowed in August

Bidding-war rate in markets Redfin operates in dropped below August 2020 level

The bidding wars that put smiles on the faces of sellers and simultaneously drove buyers to rip their hair out weren’t as frequent in August, according to the latest report from brokerage Redfin.

In August, 58.8% of offers written by Redfin agents faced a bidding war, down from the peak in April of 74.3%, and below the August 2020 bidding war rate of 59.4%.

But buyers shouldn’t get too excited. The report attributes this decrease to the normal seasonal slowdown, causing the shortage of inventory to slow as well.

Another indicator of a slowing market cited by Redfin is the percentage of homes that sold above list price. During the four-week period that ended Sept. 5, it dropped to 50% from a peak of 55% in July. Despite these obvious signs of a slowing market, Redfin states that it is in line with the typical seasonal decline.

“Sellers are still pricing their homes very high, but a lot of buyers have had enough and are no longer willing to pay the huge premiums they were six months ago. Instead of 25 to 30 offers on turnkey homes, we’re now seeing five to seven,” Nicole Dege, a Redfin real estate agent from Orlando said in a statement.

Raleigh, NC had the highest bidding-war rate of the 48 U.S. metros listed in the report, with 86.7% of offers written by Redfin agents facing competition in August. San Francisco/San Jose at 70.7%, Tucson, Arizona at 70.5%, Cincinnati at 70.4% and Salt Lake City at 68.1% rounded out the top five toughest markets for homebuyers.

On the filp side, Charleston, South Carolina; Richmond, Virginia; Milwaukee, Wisconsin; Sarasota, Florida and Oklahoma City rounded out the five most favorable cities for buyers, with bidding war rates of 43.5%, 42.9%, 42.9%, 41.7% and 35.7%, respectively.

“Sellers remain in control, but the next month or two will be very telling,” Stacey Delgado, a Redfin agent in Raleigh said.

In 2018-2019, total housing inventory was in the range between 1.52 million and 1.92 million, and that level of inventory helped to drive real home-price growth in 2019 into negative territory briefly. Existing home sales during those years stayed in the monthly sale range of 4.98 million to 5.61 million homes, according to the National Association of Realtors.

Then the pandemic hit, and after eight months of consecutive gains spanning 2020 and 2021, the consequences of low home inventory finally caught up with the housing market in February 2021.

An earlier Redfin study found that all-cash buyers improved their chances of winning a bidding war by 290%.

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular Articles

Pending home sales shock 2021 housing crash bears

Pending home sales beat estimates and we can now say the 2021 housing crash bears are even worse forecasters than the 2020 housing crash bears.

Nov 29, 2021 By

Latest Articles

Fed pulling back from the MBS market cautiously

Even as it eyes accelerating tapering, the Fed continues to replace maturing assets in its $2.6 trillion mortgage-backed securities portfolio

Dec 07, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please