Mortgage and Real Estate Trends of 2021
2021 was another huge year for real estate in all parts of the United States. Specifically, the Southwest Florida real estate market saw higher than average home price increases when compared to the rest of the country. U.S. home prices rose 18.5% year-to-year in Q3 but eight Florida markets saw higher gain than that. Cape Coral-Fort Myers saw the 2nd highest annual gains nationally at 34.7% year-over-year with North Port-Sarasota-Bradenton coming in 8th highest at 25.6%. More notably, the Cape Coral-Fort Myers market saw a 9.8% increase from Q2 to Q3 of 2021. Overall, the real estate market stayed hot all of 2021 after a record 2020. The low interest rate environment coupled with increased home buying demand created a high level of competition for the already low inventory in Southwest Florida. Historically low interest rates not only allowed more potential home buyers to enter the market, but helped current homeowners save money through refinancing at record volume also. Whether homeowners looked to take cash out of their homes via cash-out refinances or simply just lower their interest rates and monthly payments, 2021 saw nearly 59% of total loan originations come via refinances. As we head into 2022 low interest rates and high buyer demand should keep the housing market on its current path. As the new year begins and people begin to implement their goals, what do you expect to happen in the housing...D&V Home Mortgage Interviews with Good Neighbor Podcast
EP #588: D&V Home Mortgage with Derik...FHA Refis Lead Surge in Mortgage Applications
Mortgage application volume increased 2% for the period ending December 3rd according to a survey from the Mortgage Bankers Association. Compared to last year, mortgage application volume has dropped across all loan products, but still remains high overall. The main obstacle continues to be lack of inventory creating higher homes prices than some buyers are prepared for. Homebuying activity is still close to the highest levels the market has seen since March. Refinances made up 63.9% of total mortgage applications this past period. The FHA share of mortgage application volume was 9.9%, up from 8.9% the previous period. The VA share of mortgage application volume was 10.7%, up from 10.0% the previous period. ...Average Home Prices See Historic Leap
According to a Federal Housing Finance Agency report, home prices posted the largest ever year-over-year gains since the beginning of the FHFA House Price Index. Home prices across the country rose 18.5% this past year. Specifically, the “mountain division”, including Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming, went up 25% in the third quarter of this year. Annual gains can be seen in housing prices in every area of the country in 2021. As has been the case throughout the entirety of 2021, low inventory and high demand continue to play a part in the rising home prices in the United States. While home price increases month to month have started to slow, there is no doubt the demand for housing will remain high going into the new...Investors Spend Big in Q3
According to a recent report by Redfin, real estate investors spent a record $63.6 billion on home purchases in the 3rd quarter of 2021. This number represents a 78% increase from this time last year. Investors acquired a total of 90,215 homes in Q3 which represents a 80.2% increase from 2020. As increasing home prices are forcing more Americans to consider renting, real estate investors have more opportunities for tenants in their properties. One negative impact that the market is seeing as a result of investors being more active in real estate is the competition this is bringing to individual homebuyers looking to purchase homes. These cash rich investors purchased homes with full cash offers 75% of the time in Q3. Of all real estate transactions in the third quarter of 2021, real estate investors made up 18.2%. This number is considerably higher than last year. In large markets such as Atlanta, Phoenix, and Charlotte investors made up over 30% of all transactions in Q3. As home prices continue to rise and more investors enter the housing market, it may become more difficult for homebuyers to compete for homes throughout the...Connect With Us
