100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
Summary BUSN 120 week 6 assignment.docx BUSN120 Real Estate Principles: Final Research Paper BUSN120 American Public University System There are huge differences between today's housing market and last year's slow real estate market. The im$7.49
Add to cart
Summary BUSN 120 week 6 assignment.docx BUSN120 Real Estate Principles: Final Research Paper BUSN120 American Public University System There are huge differences between today's housing market and last year's slow real estate market. The im
19 views 0 purchase
Course
Ashford
Institution
Ashford University
BUSN 120 week 6 BUSN120 Real Estate Principles: Final Research Paper BUSN120 American Public University System There are huge differences between today's housing market and last year's slow real estate market. The improved economy and millennials entering their peak homebuying yea...
busn 120 week 6 assignmentdocx busn120 real estate principles final research paper busn120 american public university system there are huge differences between todays housing ma
Written for
Ashford University
Ashford
All documents for this subject (340)
Seller
Follow
helperatsof1
Reviews received
Content preview
BUSN120
Real Estate Principles: Final Research Paper
BUSN120
American Public University System
There are huge differences between today's housing market and last year's slow real estate
market. The improved economy and millennials entering their peak homebuying years are
fueling a residential housing boom. Low mortgage rates, combined with an increase in working
from home as a result of the epidemic, have spurred a surge in housing demand, particularly in
lower-density suburbs. In 2020, more existing homes were sold than in any other year since
2006. (Diana,2021). According to Realtor.com, the average home asking price touched a new
high of $380,000 in May 2021, an increase of 15.2 percent over the previous year. Home prices
have never dropped, but they stayed flat this time last year. However, the rate of home price
growth has decreased by 2 percentage points since last month. As inventory continues to
dwindle, there is no relief in sight for homebuyers. Before the cooling off trend begins this fall,
the median home price is expected to reach new highs in the following months.
This year, more homeowners are advertising their homes for sale, resulting in a record-high
number of "new listings." At the same time, these homes are selling quickly, with a 32-day
shorter time on market than this time last year. While the flood of sellers will help alleviate some
of the competitive pressure that buyers are under, purchasers must still make offers that are
strong enough to win out in a multiple-bid scenario.
“Existing-home sales fell for the third month in a row in April, according to the latest data from
the National Association of Realtors.” Low inventory and rapidly rising prices have caused this
drop. At the end of April, there were 20.5 percent fewer properties for sale than a year before.
At the current sales rate, there were 1.16 million homes for sale, resulting in a 2.4-month supply.
(Country Place Mortgage, n.d)
Existing-home sales fell 2.7 percent in April compared to March, to 5.85 million units on a
seasonally adjusted annualized basis. Sales were up 33.9 percent from April 2020, when the
home market was still shut down due to the pandemic's beginnings.
"Despite the fall, housing demand remains strong compared to a year ago, as indicated by home
sales from January to April this year, which are up 20% over 2020," said Lawrence Yun, NAR's
chief economist. Home sales fell in all but one of the four major U.S. regions in April, but each
all three regions saw double-digit growth every year. The Midwest region shows a 0.8 percent
increase in sales between March and April.
, According to the National Association of Realtors, pending house sales fell 4.4 percent in April
compared to the previous month, owing in part to a record-low inventory of homes for sale in the
first quarter of 2021. In terms of pending home sales contract transactions, all four U.S. regions
saw year-over-year improvements, while only the Midwest saw month-over-month growth.
Pending home sales are a leading indication of completed home sales.
Due to the typical length of time it takes for a home sale to close, experts believe that pending
sales are a good predictor of future closed sales in the next one to three months. It's important to
remember, though, that not all signed contracts will be successfully closed. because they are
vulnerable to market conditions such as the availability of financing for homebuyers
Will the Housing Boom Last or Will It Crash?
Most market watchers are wondering When it comes to Many market watchers are not certain
how long this housing boom will last or whether the market will eventually crash. So far, the
housing market has remained scorching hot, resulting in higher home prices, excessively high
offers, and quick sales. Only the housing supply, which continues to fall short of demand, is a
source of concern. Although increasing the supply of homes for sale would help to balance this
strong seller's market, recent housing market trends do not indicate that inventory will improve
anytime soon.
What Happens After That? Since March, rates have been paused and hovering around 3%.
Despite the favorable rate environment, there is still a scarcity of available homes. The lack of
housing supply has been exacerbated by labor market disruptions and high-cost building
materials like lumber, which are driving up the cost of new housing and making it difficult for
homebuyers to find homes to buy.
Despite the decrease in home sales, the housing market is still hot, with mortgage rates hovering
around 3%. In April, the median existing home price was $341,600, a new high that marks a
19.1% rise over the previous year. That is both the highest median price and the largest annual
gain in the history of the market. There were price increases in every region of the housing
market, marking 110 months of year-over-year growth.
“In April, properties were on the market for an average of 17 days, and 88 percent of homes sold
were on the market for less than a month. Single-family home sales fell 3.2 percent in April to a
seasonally adjusted annual rate of 5.13 million, down from 5.30 million in March but up 28.9%
from a year ago.” (Diana,2021). In April, the typical price of an existing single-family home was
$347,400, up 20.3 percent from April 2020.
In May, most properties continued to sell quickly, while the total number of residences for sale
remained limited. In most parts of the country, the real estate market is still strong for sellers.
According to Realtor.com, the Midwest and northeast housing markets are the hottest in the
country, accounting for 14 of the top 20.
Manchester-Nashua, NH continues to be the country's hottest housing market, with 50% of all
properties in Manchester selling in less than 10 days. The second-highest city on the list is
Concord, New Hampshire. The primary determinants of hotness are market demand and market
tempo, as defined by the number of days a listing is active on its portal.
Other recent market patterns indicate that more sellers than usual want to put their houses for
sale in the coming year. Homebuyers will undoubtedly have more options as a result of this
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller helperatsof1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.49. You're not tied to anything after your purchase.
