Equity Rises $2.9 Trillion for Homeowners in 2021 2nd Quarter
According to a report by Corelogic, homeowners gained $2.9 trillion in equity during the second quarter. This $2.9 trillion gain equates to a 29.3% year-over-year increase from 2020. The growth in homeowner equity allows for tens of millions of Americans to feel a higher sense of financial cushion and fend off the fears of foreclosure brought about by the uncertainty of the pandemic. As the housing market continues to stay hot, equity in homes should continue to rise...Keys to the Appraisal Concerns within the Private Lender Sector
According to John Tedesco, the senior VP of business development at Appraisal Nation, stiffer appraisal regulations and harder entry requirements for appraisers are leading to longer appraisal wait times with higher costs of completion. Because of the high demand for appraisals, appraisal wait times have increased from about five or six days to two or three weeks in some cases. Similarly, the price has risen from between $400-$500 to $700-$800. Appraisal Nation is one of the top appraisal management companies in the United States working with more than 26,000 appraisers every year completing 150,000 residential and commercial appraisals. Since 2013, the number of real estate appraisers has been rapidly falling. In 2013 there were over 89,000 licensed appraisers according to Appraisal Institute, but now there are only about 78,000 with 20% of them being older than 66. As the need for appraisals continues to rise and the work force ages towards retirement, new appraisers are needed to quell the increasing...Purchase Mortgage Application Volume Trends Up
Mortgage application volume increased 0.3% this past week ending in September 10th. This increase in application volume was led by purchase applications coming in at a much higher level than the previous weekly period. Refinance applications fell by 3% as the purchase applications rose 8%, marking the highest level of purchase mortgage applications since April 2021. The FHA share of mortgage application volume dipped to 9.9% from 10.9% the week prior. The VA share of mortgage application volume dipped to 10.2% from 10.4% the week...Homebuyers Flocking to Florida
The Sunshine State has seen a vast population increase in recent years, especially in Miami. According to a Redfin monthly migration report, the net inflow of Redfin users moving to Miami was 7,610. Last year during the same month 2,216 people moved to Miami. Of more local relevancy, Cape Coral saw 4,315 Redfin users move to the area, an increase from the 2,778 that moved to Cape Coral in July 2020. The warm weather, beaches, and low taxes are huge factors in the influx of new Florida residents. As we get later into 2021, we can expect to see a high volume of buyers continue to seek Florida...Fewer First Time Homebuyers are Competing for Homes
From June to July existing-home sales increased by 2% according to a report from the National Association of Realtors. Year-over-year there was a 1.5% increase in completed transactions of single-family homes, townhomes, and condominiums. After having 12+ months of low inventory, the availability of unsold homes in the market rose 7.3% from June to July. As more and more sellers enter the market, the hope of leading economists is that it will level the playing field for homebuyers moving forward. First time homebuyers may still feel a bit priced out of the market as the median existing home sales price rose to $359,900 in July, up from $305,600 last year. This 17.8% increase in price seems to be pushing some buyers out of the market. NAR released a report recently stating that 30% of sales in July were completed by first time homebuyers compared to 34% this time last year. Adding more inventory and having purchase prices stabilize should allow new buyers to be more comfortable in today’s...Connect With Us
