On TV, renovations are quick, easy, and always end in a job done perfectly. You don’t see the dust or endure weeks without access to your kitchen or bathrooms. You certainly don’t ever see a contractor who cuts corners, doesn’t finish the work, or does a poor job. In other words, renovations can be challenging. Maybe that’s why a recent survey of prospective home buyers found that 56.1 percent of them say the most important factor when searching for a home to buy is finding one that is move-in ready and needs no repairs. An additional nearly 40 percent listed a move-in ready home as somewhat important to them. But while a substantial number of potential buyers say they’re looking to avoid renovations and repairs, 54.8 percent said they’d compromise and buy a fixer-upper if that’s what was available. Are you willing to consider a home that needs work? (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved higher last week for 30-year fixed-rate loans with conforming loan balances and 15-year fixed-rate loans. Jumbo loans, loans backed by the Federal Housing Administration, and 5/1 ARMs all saw slight declines. Still, rates remain elevated and that brought demand for mortgage applications down 3.7 percent last week from the week before. Joel Kan, MBA’s vice president and deputy chief economist, says demand for loans to buy homes was at its lowest level since last February. “Applications decreased last week as rising mortgage rates continued to discourage buyers from entering the market and put a damper on purchase activity,” Kan said. “Purchase applications declined for both conventional and government loans and dropped to the slowest weekly pace since February 2024.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Each month, Fannie Mae surveys Americans and asks for their opinions on the housing market and economy. Participants weigh in on everything from mortgage rates and home prices to whether it’s a good time to buy or sell a home and how they feel about their job and financial situation. The resulting Home Purchase Sentiment Index then distills that information into a single number that reflects how Americans view housing market conditions. In December, the index fell 1.9 points to 73.1, which is lower than the previous month but substantially higher than it was at the same time last year. Mark Palim, Fannie Mae’s senior vice president and chief economist, says the gains are due to optimism about mortgage rates. “Even though the HPSI fell to end the year, consumer sentiment toward the housing market finished 2024 substantially above year-ago levels, attributable in part to respondents’ ongoing expectations that mortgage rates will decline,” Palim said.” According to the results, 42 percent of participants said they believe rates will fall over the next 12 months, while 25 percent said they expect higher rates and 32 percent expect rates to stay the same. (source)

Generally speaking, people want to live close to family, friends, and work, which is why most buyers choose a home relatively close to where they currently live. But there are many reasons somebody might have to move and sometimes they require traveling a greater distance – including to another state altogether. A recent analysis looked at people who left their home state to find out which states are most popular with long-distance movers. It found some established trends. For one, Americans are moving south. The top state for movers who crossed state lines in 2024 was South Carolina, which toppled Texas for the top spot after the lone-star state won in 2023. Other popular destinations that made 2024’s list included North Carolina, Florida, and Tennessee. Southern states are popular for a few reasons but the most important may be affordability. After all, states with a higher cost of living are the ones losing the most residents, including New York, New Jersey, Massachusetts, and California each of which landed near the bottom of the list. (source)

The internet is likely the first place you’ll go when you decide to buy a home. It’s the quickest way to get a feel for your local housing market. It’s also a great way to find out your priorities. After all, the first terms you enter when you search for homes to buy are likely the ones that are most important to you. So, what are some common home shopper search queries? Well, according to a new analysis of search-term trends, last year’s most searched-for attributes were a combination of function and fantasy. Utility items like garages and patios made the list alongside more aspirational searches for beachfront property and luxury homes. The most popular search term of 2024, though, was “ranch,” followed by “lake,” “duplex,” “cabin,” and “farm.”  There were some regional differences as well, with buyers in warm-weather states preferring homes with a pool and shoppers in Mississippi prioritizing backyards. One home buyer in Colorado even searched for a home with a roller coaster, while “spooky” and “haunted” houses were popular with buyers in 22 states. (source)

According to the Mortgage Bankers Association’s Weekly Application Survey, demand for mortgage loan applications fell more than 20 percent last week from two weeks earlier. The decline, however, was no surprise. The end of the year is always slow. Mike Fratantoni, MBA’s senior vice president and chief economist, says this year’s holiday slowdown was aided by higher mortgage rates. “Mortgage rates moved higher through the last full week of 2024 …” Fratantoni said. “Not surprisingly, this increase in rates – at a time when housing activity typically grinds to a halt – resulted in declines in both refinance and purchase applications.” Rates rose across most loan categories, with increases seen for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Rates for 5/1 ARMs fell over the final two weeks of 2024. The MBA’s survey has been conducted weekly since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Home prices have been fairly consistent lately. Though still increasing in most markets, prices have been climbing at an ever-slowing rate as the supply of homes for sale has grown. That continues to be the case, according to the latest results from the S&P Case-Shiller Home Price Indices. Considered to be among the leading measures of U.S. home prices, S&P’s index has been tracking home values for more than 30 years. Their latest release shows prices up 3.6 percent nationally from last year at the same time – down from a 3.9 percent annual gain the previous month and a 4.2 percent increase the month before. In other words, home price increases are getting smaller. Brian D. Luke, S&P’s CFA, head of commodities, real & digital assets, says prices may be slowing but they’re still at an all-time high. “Our National Index hit its 17^th consecutive all-time high, and only two markets – Tampa and Cleveland – fell during the past month,” Luke said. “The annual returns continue to post positive inflation-adjusted returns but are falling well short of annualized gains experienced this decade.” (source)

The National Association of Realtors’ Pending Home Sales Index measures the number of contracts to buy homes signed each month. The index is considered a good indicator of future home sales, since contract signings typically precede closings by several weeks. According to the most recent release, the index found contract signings up 2.2 percent month-over-month in November, pushing pending sales activity nearly 7 percent higher than it was last year at the same time. The gains were widespread and included all regions of the country – except the Northeast which experienced a slight decline. Lawrence Yun, NAR’s chief economist, says increased contract signings are an indication that home buyers have reset their expectations. “Consumers appeared to have recalibrated expectations regarding mortgage rates and are taking advantage of more available inventory,” Yun said. “Buyers are no longer waiting for or expecting mortgage rates to fall substantially. Furthermore, buyers are in a better position to negotiate as the market shifts away from a seller’s market.” (source)

The past two years have been hard for home buyers. A combination of volatile mortgage rates, high home prices, competition and bidding wars, made finding an affordable home a challenge. Fortunately, though, the new year looks like it will bring brighter days for buyers. The National Association of Realtors certainly thinks so. Lawrence Yun, NAR’s chief economist, says the worst is over. “Home buyers will have more success next year,” Yun said. “The worst of the affordability challenges are over as more inventory, stable mortgage rates, and continued job and income growth pave the way for more Americans to achieve homeownership.” The group believes mortgage rates will fall slightly before stabilizing, home prices will increase at a more moderate pace, and the number of homes for sale will continue to improve. It also expects markets in South and North Carolina, Michigan, Missouri, Arizona, Texas, Tennessee, Indiana, Connecticut, and Massachusetts to be among 2025’s hot spots. (source)

In October, a mix of regional factors, higher mortgage rates, and extreme weather caused sales of newly built single-family homes to tumble. At the time, it was thought to be a temporary setback rather than the start of a downward trend. That now looks to be true. In fact, new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development show new home sales charged back in November, increasing 5.9 percent from October’s level and 8.7 percent from a year ago. The rebound helped reset the previous month’s declines. For example, November data shows the South bounced back 13.9 percent from October, when sales were down sharply due to the hurricanes that affected the region. The results also continue a long-term trend in the new home market, which has been outperforming the market for existing homes for some time now. With new home sales and inventory both rising, newly built homes are increasingly an option for home buyers frustrated by a lack of available older homes for sale. (source)