Spring Brings a Rise in Home Sales and Profits

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According to ATTOM Data Solutions First Quarter 2021 U.S. Home Sales Report, which was released This Week in Real Estate, home sellers average profit was up 26% compared to the first quarter last year. The average profit represented a 34.2 percent return on investment compared to the original purchase price. Below are a few newsworthy events from the fourth week of April that influence our business: 

Pending Home Sales in U.S. Grow 2% in March. According to the National Association of Realtors, U.S. pending home sales increased in March 2021, snapping two consecutive months of declines. All but one of the four major U.S. regions experienced month-over-month gains in March, while each area recorded year-over-year growth. The Pending Home Sales Index, a forward-looking indicator of home sales based on contract signings, rose 1.9% to 111.3 in March. Year-over-year, contract signings jumped 23.3%. “The increase in pending sales transactions for the month of March is indicative of high housing demand,” said Lawrence Yun, NAR’s chief economist. “With mortgage rates still very close to record lows and a solid job recovery underway, demand will likely remain high.” Existing-home sales are projected to rise by 10% in 2021 to reach 6.2 million in 2021, while the median home price is anticipated to increase by 9% in 2021 to $323,900. The Pending Home Sales Index in the West grew 2.9% in March to 94.5, up 29.8% from a year prior.

  

Mortgage Rates Remain Under 3% for Another Week. Home buyers had another opportunity to snag ultra-low rates this week. The 30-year fixed-rate mortgage averaged 2.98%, Freddie Mac reports. “In light of the rising COVID-19 caseloads globally, U.S. Treasury yields stopped moving up a month ago and have remained within a narrow range as the market digests incoming economic data,” says Sam Khater, Freddie Mac’s chief economist. “The good news is that with rates under 3%, refinancing continues to be attractive for many borrowers who financed before 2020. The National Association of REALTORS estimates mortgage rates to average 3.2% by the end of the year.

U.S. Home Seller Profits Dip Slightly in First Quarter of 2021 But Remain Higher Than Year Ago. ATTOM Data Solutions released its first-quarter 2021 U.S. Home Sales Report on Thursday, which shows that profits for home sellers nationwide were again up on an annual basis in yet another sign of how the housing market is fending off economic damage caused by the Coronavirus pandemic. The report reveals that the typical first-quarter 2021 home sale in the United States generated a profit of $70,050. That was down from $75,750 in the fourth quarter of 2020 but still up 26 percent from $55,750 in the first quarter of 2020. The typical $70,050 home-sale profit represented a 34.2 percent return on investment compared to the original purchase price – down from 37.1 percent in the fourth quarter of 2020 but still higher than the 30.8 percent level recorded a year ago. 

Did you know every home listed for sale with Berkshire Hathaway HomeServices Northwest
Real Estate is eligible to receive no obligation home warranty coverage from American Home
Shield or 2-10 Home Warranty the first six months the home is listed with our company?

www.bhhsnw.com

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