In a recent presentation the chief economist for the National Association of Realtors, Lawrence Yun, noted that this winter may be one of the best for home sale activity.
Yun stated that "Pending contracts are higher" and that "Mortgage applications are up roughly 20%," according to a Nov. 24 article on the Pennsylvania Association of Realtor's website. On top of that, Yun was quoted saying that there "are plenty of buyers in the pipeline."
It was noted that supply is an issue, therefore homeownership rates will be challenged in the future. In the same Nov. 24 article by the Pennsylvania Association of Realtor's, Yun was quoted saying that "we have a six-month supply in normal times. Right now, it's hitting an all-time low of right under three months," and that there are "simply not enough homes."
Along with a low supply of homes, prices are rising rapidly because multiple offers are being made. This limits renters from becoming buyers, according to Yun. He called for a boost in the housing supply.
Because many people are working from home during the COVID pandemic, they have a desire to move, therefore apartment rental vacancies are rising in cities, but dropping in suburbs. Yun also reported that there's a collapse in office leasing activity.
Yun predicted that 2021 will be a better year because he believes mortgage rates should remain stable and that the housing market will still be strong. His forecast for new-home sales was an increase of 21%, with existing home sales seeing a 9% jump. Yun stated that he thinks the "working-from-home demand for larger sized homes will continue," and that "Prices are in no danger of decline."
To read more about Yin's presentation and what it means for the real estate industry, check out this article on the Pennsylvania Association of Realtor's website.
It was noted that supply is an issue, therefore homeownership rates will be challenged in the future. In the same Nov. 24 article by the Pennsylvania Association of Realtor's, Yun was quoted saying that "we have a six-month supply in normal times. Right now, it's hitting an all-time low of right under three months," and that there are "simply not enough homes."
Along with a low supply of homes, prices are rising rapidly because multiple offers are being made. This limits renters from becoming buyers, according to Yun. He called for a boost in the housing supply.
Because many people are working from home during the COVID pandemic, they have a desire to move, therefore apartment rental vacancies are rising in cities, but dropping in suburbs. Yun also reported that there's a collapse in office leasing activity.
Yun predicted that 2021 will be a better year because he believes mortgage rates should remain stable and that the housing market will still be strong. His forecast for new-home sales was an increase of 21%, with existing home sales seeing a 9% jump. Yun stated that he thinks the "working-from-home demand for larger sized homes will continue," and that "Prices are in no danger of decline."
To read more about Yin's presentation and what it means for the real estate industry, check out this article on the Pennsylvania Association of Realtor's website.
