Coit Group Fine Homes

A Remarkable Recovery for the Housing Market For months now the vast majority of Americans have been asking the same question:  When will the economy turn around?  Many experts have been saying the housing market will lead the way to a recovery, and today we’re seeing signs of that coming to light. With  record-low  mortgage rates driving high demand from potential  buyers , homes are being purchased at an accelerating pace, and it’s keeping the housing market and the economy moving. Here’s a look at what a few of the experts have to say about today’s astonishing recovery. In more than one instance, it’s being noted as truly remarkable. Ali Wolf, Chief Economist, Meyers Research "The housing recovery has been nothing short of remarkable...The expectation was that housing would be crushed. It was—for about two months—and then it came roaring back.” Fannie Mae “Recent home purchase measures have continued to show remarkable strength, leading us to revise upward our

Mortgage Rates Hit Record Lows for Three Consecutive Weeks Over the past several weeks,  Freddie Mac  has reported the average 30-year fixed mortgage rate dropping to record lows, all the way down to  3.03% . Last week’s reported rate reached the lowest point in the history of the survey, which dates back to 1971  (See graph below ): What does this mean for buyers? This is huge for homebuyers. Those currently taking advantage of the increasing  affordability  that comes with historically low interest rates are winning big. According to Sam Khater,  Chief Economist  at  Freddie Mac: “The summer is heating up as record low mortgage rates continue to spur homebuyer demand.” In addition,  move.com   notes : “Summer home buying season is off to a roaring start. As buyers flooded into the market, realtor.com ®  monthly traffic hit an all-time high of 86 million unique users in June 2020, breaking May's record of 85 million unique users. Realtor.com ®  daily traffic also

What Are Experts Saying about Home Prices? Last week, a very well-respected real estate analytics firm surprised many with their home price projection for the next twelve months.  CoreLogic , in their latest  Home Price Index  said: “The economic downturn that started in March 2020 is predicted to cause a 6.6% drop in the HPI by May 2021, which would be the first decrease in annual home prices in over 9 years.” The forecast was surprising as it was strikingly different than any other projection by major analysts. Six of the other eight forecasts call for appreciation, and the two who project depreciation indicate it will be one percent or less. Here is a graph showing all of the projections: There’s a simple formula to determine the future price of any item: calculate the supply of that item in ratio to the demand for that item. In housing right now, demand far exceeds supply. Last week mortgage applications to buy a home were  33% higher  than they were at the same time l