Realty Updates | Interest Rates, Seller Confidence & New Constructions

Experts weigh in on the current status of the Real Estate market!

“New Construction for both single-family and multifamily units ramped up sizeably in July, up 23% from one year ago and almost matching pre-pandemic activity in the first quarter. Such growth is needed to steadily relieve the housing shortage. This kind of growth is also a major contributor to local economic recovery.”

-Lawrence Yun

Single-family construction is benefiting from low interest rates and a noticeable suburban shift in housing demand to suburbs, exurbs and rural markets as renters and buyers seek out more affordable, lower density markets, as seen in the separate NAHB HBGI,” 

-National Association of Home Builders

“While home prices have risen for 97 consecutive months, July’s record-low mortgage rates have made purchasing the average-priced home the most affordable it’s been since 2016.

Mortgage Monitor Report

“In July, house-buying power got a big boost as the 30-year, fixed mortgage rate made history by moving below three percent. That drop in the mortgage rate from 3.23 percent in May to 2.98 percent in July increased house-buying power by nearly $15,000.

-Mark Fleming, Chief Economist at First American

“Purchasing power rose 10% year-over-year…With interest rates hitting record lows, buyers were able to afford $32,000 “more house” as of July 23 than they could the year before with the same monthly payment.”

-National Mortgage News

“In a strong signal that the housing market is ready to lead a post-COVID economic recovery, builder confidence in the market for newly-built single-family homes jumped 14 points to 72 in July. The HMI now stands at the solid pre-pandemic reading in March before the outbreak affected much of the nation.”

-National Association of Home Builders/Wells Fargo Housing Market Index 

“Seller confidence has been improving gradually after reaching its bottom in mid-April, and now it appears to have reached an important recovery milestone…After five long months, sellers are back in the housing market; while encouraging, the improvement to new listings is only the first step in the long road to solving low inventory issues keeping many buyers at bay.” 

-Javier Vivas, Director of Economic Research at realtor.com