Earlier this year, economists predicted that real estate would be a large driving force behind the US economy’s recovery. In the past few months, the numbers of residential sales and mortgage purchase applications have surged, suggesting that the housing market recovery is even stronger than previously anticipated.
The Housing Market Recovery Is Soaring
All-time low mortgage interest rates and a new appreciation for the value of homeownership have caused the housing market to remain strong despite the volatility of the overall economy. In fact, housing market recovery has gone even better than predicted. Two major indicators of the market’s health show incredible resilience throughout these uncertain times.
Mortgage applications have increased
The number of buyers applying for mortgages is a strong indicator of the housing market’s strength and growth. According to the Mortgage Bankers Association, the number of purchase applications dropped dramatically in March and mid-April, when the economy first tumbled, but has since climbed considerably.
In late April through mid-June, the number of applications surged, a result of pent-up demand further fueled by record-low interest rates. Since July, the number of purchase applications has remained steady, but still reflects a double-digit increase from levels just one year ago. In fact, August’s report shows a 22% increase over last year.
Pending contracts have also increased substantially
Like mortgage applications, the number of pending contracts can reflect the strength of the housing market. According to Zillow, the number of newly pended homes dropped substantially in late March and early April, then climbed swiftly until mid-May.
Since June, the number of pending sales has held fairly steady. This number, though steady, is still 16% higher than the same time last year.
Raleigh’s Housing Market Is Especially Strong
While the above data reflects numbers nationwide, Raleigh’s market mirrors the behavior and expectations of the national market. In July, there was a 10.9% increase from last year in closed sales, as well as a 17% increase in total dollar volume.
In fact, Raleigh’s numbers have seen increases across the board—except in the inventory of homes for sale. July 2020 saw a 37% decrease in the inventory of homes for sale from last July… as well as a 44% decrease in months supply of inventory. That translates to a fast-paced, aggressive market that favors sellers. In short, it’s a great opportunity for sellers considering listing their homes.
Thinking About Making a Move?
If you’re thinking about selling your home in the Triangle area, Linda Craft & Team is here to help. Contact us today to learn more about how we can help you price your home right, get it looking fantastic, and ultimately list it for top dollar. Call us at 919-235-0007 to find out how we can put our 350+ years of combined experience to work for you.