The next wave of servicing regulation is coming – Are you ready?

Join this webinar to learn what servicers need to know about recent and upcoming servicing compliance regulations and strategies experts are implementing to prepare for servicing regulatory audits.

Inside Look: RealTrends 2021 Brokerage Compensation Study

Steve Murray, senior advisor to RealTrends, gives an exclusive first look at the 2021 RealTrends Brokerage Compensation Report.

Logan Mohtashami on trends in forbearance exits

In this episode of HousingWire Daily, Logan Mohtashami discusses several hot topics in the housing market, including recent trends in forbearance exits and future homebuyer demand in the midst of inventory shortages.

Natural disasters and forbearance: What borrowers and mortgage servicers need to know

With a rise in natural disasters, including wildfires, hurricanes, floods, tornadoes and mudslides. The mortgage industry needs to be proactive in examining programs to help borrowers recover.

Real Estate

Pending home sales reach highest May mark in 16 years

Contract signings on new homes jumped 13.1% year over year

Pending home sales reached its highest mark for the month of May since 2005, up 8% from the previous month of April as low inventory continues driving buyers to snatch up available real estate.

The strong increase in home sales and transactions in May —following a dip in April — was a surprise, per Lawrence Yun, National Association of Realtors chief economist, who attributed the home sales increase to mortgage rates remaining below 3%, as well as an uptick, nationally, in listings.

“Buyers are still lining up a feverish pace,” Yun said. “While [the COVID-19 pandemic, low inventory and high prices] have contributed to pricing out would-be buyers, the record-high aggregate wealth in the country from the elevated stock market and rising home prices are evidently providing funds for home purchases.”

Contract signings on new homes increased 13.1% year over year.

All four U.S. regions reported month-over-month and year-over-year home sale gains, per a release from the NAR. The Northeast increased 15.5% in May, a 54.6% climb from 2020. In the Midwest, sales increased 6.7% monthly and 7.8% year over year. The South reported a 4.9% increase (6.1% increase year over year) and the West increased 10.9% (up 12.5% year over year).

How fix’n’flip loans could help expand housing inventory

The market is tight, prices are soaring on what stock is available and it’s not available long. Here’s how fix’n’flip loans may be the fix.

Presented by: Acra Lending

Metros with the largest year-over-year increase in pending home sales were Tampa-St. Petersburg-Clearwater, Florida; Detroit-Warren-Dearborn, Michigan; Nashville-Davidson-Murfreesboro-Franklin, Tennessee; Riverside-San Bernardino-Ontario, California; and Jacksonville, Florida.

Yun said he expects an increase in market listings in the second half of the year, as more homes are built and the federal mortgage forbearance program winds down. A decrease in lumber prices will do wonders for builders, too, he said.

“Home price growth will steadily moderate with increased supply, but a broad and prolonged decline in prices is unlikely,” Yun said. “If a reduction does occur in some markets, homebuyers will view the lower home price as a second-chance opportunity to get into the market after being outbid in previous conditions.”

Ruben Gonzalez, Keller Williams chief economist, added that he is “optimistic” new home construction will pick up.

“We will continue to gain momentum through the rest of the year if we can avoid further supply chain disruptions,” Gonzalez said. “Lumber prices have come down from all-time highs, but are still far above previous norms.”

The continued distribution of the multiple COVID-19 vaccines is key to a return of affordable building material prices and shorter supply delivery times to increase home sales. Builders have told HousingWire that they are struggling to find full crews to build homes, as enhanced unemployment benefits   — enacted by the government to combat the effects of the pandemic — are keeping workers at home.

Leave a comment

Most Popular Articles

These are the hottest housing markets in America

A housing market report from RE/MAX found that 36 of 51 metro areas had double-digit year over year sale price increases in August. Boise led the way.

Sep 17, 2021 By

Latest Articles

Radian expands its online title insurance platform

Radian Group recently announced the launching of its title insurance and closing services platform, titlegenius, in Arizona, California, Nevada, Ohio and Pennsylvania

Sep 20, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please