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 EstateMortgageValuations

Zillow: Expect another record year for home sales

Zillow predicts a 21% increase in home sales, the most recorded since 2005

Zillow’s 2021 housing forecast echoes the projections of other industry experts for an acceleration of home sales and home value appreciation, with numbers anticipated to be even higher than in 2020.

According to Zillow’s Home Value Index, the company expects seasonally adjusted home values to increase by 3.7% from December 2020 to March 2021, and by 10.5% through December 2021. It also predicts home value appreciation to peak in June 2021 at 13.5%.

In fact, the company has already upped its December 2020 forecast: Zillow initially expected a 10.3% increase in home values through November 2021.

Approximately 5.6 million existing homes were sold in 2020, a 5.3% increase from 2019, according to officials. Zillow predicts 6.82 million existing home sales in 2021, the most recorded in a single calendar year since 2005 and a 21.1% increase from 2020.

Quarterly Zillow Home Value Index growth as of December 2020 was 3.2%, the strongest three-month appreciation since 1996.


How manufactured homes can help alleviate the affordable housing crisis

Over the past few decades, the inventory of affordable homes has been in sharp decline while home prices have risen dramatically. There’s one possible solution.

Presented by: Fannie Mae

“Home values rose sharply near the end of the year at their fastest quarterly rate on record,” said Jeff Tucker, Zillow senior economist. “Sales are taking place at a rapid clip, as momentum gathering in the market since June is still pushing forward at full force and is expected to continue for the foreseeable future.”

Tucker added that record-low mortgage rates are keeping buyers coming to the table – despite rising prices.

“[The low rates] are keeping monthly payments in reach,” he said.

Although mortgage rates are expected to rise in 2021, it’s not out of the realm of possibility that sub-3% rates become the norm following the economic turmoil caused by the COVID0-19 pandemic.

Rates fell to 3.13% in June before bottoming out around 2.67% by the end of the year.

Rounding out the 2020 data, the seasonally adjusted annualized rate of existing home sales in November was 6.69 million – up 25.8% from November 2019. Zillow officials expect this rate to remain high – above 6.65 million – through 2021. 

“Our bullish outlook for sales and home values is driven by the current strength of the home-buying market and our expectation that low mortgage rates, demographic tailwinds and an improving economy will continue to prop up market competition,” Tucker said.

Leave a Reply

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

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 is $970,800.

Nov 30, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please