The number of homes valued at $1 million or more is now more than twice what it was pre-pandemic, according to a new analysis of the luxury home market. The data shows that 8.5 percent of homes in America are worth more than $1 million, up from 7.6 percent last year and 4 percent pre-pandemic. The increase should come as no surprise, given the recent rise in home prices. Price increases spiked during the pandemic-era buyer boom and have only begun to slow over the past year. Those increases pushed home values higher across all price ranges and regions. Certainly in the luxury home market, where the median price of a high-end home has reached $1.18 million and the number of million dollar homes has moved higher in all but three of the 50 most populated U.S. metros over the past year. (source)

The housing market has favored sellers all year, as a lower-than-normal number of available homes for sale has kept buyer competition high. But, according to one new analysis, conditions are changing. In fact, the analysis found that the housing market has moved into neutral territory for the first time this year. That means the current market doesn’t favor buyers or sellers due to a better balance between supply and demand. The number of homes for sale has risen and competition among buyers has eased. That’s good news for home shoppers – but it depends, of course, on where they’re looking. Some markets, particularly in the Northeast, remain better for sellers due to still-low inventory, while markets in Florida and Texas have moved to fully favor buyers. Wherever you are, though, mortgage rates could change the trend in the months ahead. If rates continue to fall, as expected, it could revive home buyer demand, competition, and the number of markets where conditions favor sellers over buyers. (source)

Each month, the National Association of Home Builders conducts a survey asking builders for their opinion of the market for newly built homes. The NAHB’s measure of builder confidence is a closely watched market barometer, as a home builder’s success is dependent on an ability to read the market and know what buyers want, where they want it, and when. In August, the survey – which is scored on a scale where any number above 50 indicates more builders see conditions as good than poor – scored a 39, down two points from the month before. But while confidence has been down this summer, builders see better days ahead, according to NAHB chief economist Robert Dietz. “With current inflation data pointing to interest rate cuts from the Federal Reserve and mortgage rates down markedly in the second week of August, buyer interest and builder sentiment should improve in the months ahead,” Dietz said. (source)

When homes are selling quickly, buyers have to move fast. That can be stressful. Choosing a home to buy is not a decision you want to make in a hurry. That’s why a recently released market analysis should be encouraging for anyone hoping to buy a home anytime soon. The analysis shows the housing market has cooled and is less competitive now than it’s been in recent years. For example, homes sold in July were typically on the market about 18 days, which is six days longer than they were last year at the same time. And while that’s still faster than the average pre-pandemic pace, listings lasting almost a week longer than last summer is definitely a break for buyers. The reason for the improvement is growing inventory. As the number of homes for sale has risen, the balance of supply and demand has improved and provided buyers some additional time to deliberate before making an offer. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were relatively flat last week after falling to the lowest level in more than a year the week before. Rates were virtually unchanged for 30-year fixed-rate loans, FHA loans, and jumbo loans, while rates for 15-year fixed-rate loans decreased and 5/1 ARMs moved higher. With rates still lower than they’ve been all year, mortgage demand skyrocketed, jumping nearly 17 percent week-over-week. Joel Kan, MBA’s vice president and deputy chief economist, says refinance activity saw the biggest gains. “Overall, applications increased almost 17 percent to the highest level since January 2023, driven by a 35 percent increase in refinance applications,” Kan said. “Additionally, purchase applications increased by 3 percent, with small gains seen across the various loan types, indicating that prospective home buyers are slowly reentering the market.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

People move for a variety of reasons. A move could be inspired by everything from a new job in a different area to weather or a desire to be closer to family and friends. On the list of reasons people move, though, space is always near the top. Home buyers are often looking to expand – or downsize – their living space. But is there a size that’s right for most buyers? A new analysis from the National Association of Home Builders offers some clues on what most home shoppers want. According to the analysis, 21 percent of home buyers want a house between 1,600 and 2,000 square feet, while 26 percent want something smaller than 1,600 square feet. That means, nearly half of all home buyers are looking for a home under 2,000 square feet. Up next, an additional 38 percent of shoppers say they prefer a house between 2,000 and 3,000 square feet. That’s a decent sized home and a significant share of shoppers who’re interested in finding one. But 3,000 square feet may be the limit, as homes larger than 3,000 square feet were the least in demand, with just 14 percent of buyers looking for a home that size. (source)

The housing market has softened a bit in recent weeks, with mortgage rates and home prices both showing signs of calming. Whether or not it’s enough to inspire buyers remains to be seen. But according to one recent survey, current home shoppers are feeling positive about their position. In fact, a majority said they feel confident. Results found 56 percent of respondents said they expect to find and close on an affordable house that fits their needs. Additionally, 44 percent of surveyed home shoppers said they expect to get a good deal. That’s a positive sign for the summer housing market as it heads toward fall. But while current buyers are optimistic, a majority of survey participants still have affordability concerns. Home prices and mortgage rates topped the list of current concerns, with finding the right place coming in third on the list of worries. (source)

How easy or difficult it is for a prospective home buyer to get approved for a loan depends on credit availability. Current lending standards and access to loan programs play a part in determining whether or not a borrower can secure financing. That’s why the Mortgage Bankers Association tracks mortgage credit availability each month. Any increase in its Mortgage Credit Availability Index indicates that credit has become more available, while decreases signal that credit has tightened. In July, the index rose 3.3 percent. Joel Kan, MBA’s vice president and deputy chief economist, says access to credit is rebounding. “Overall credit availability grew to its highest level since October 2023 …,” Kan said. “Industry capacity has been low for some time, but we have now seen more than six months of credit expansion, which should be supportive for home buyers and refinance borrowers, as rates have declined in recent weeks.” July’s improvement was driven by increased conventional loan offerings such as ARMs and cash-out refinance loans. (source)

Fannie Mae’s monthly Home Purchase Sentiment Index is based on a survey which asks Americans for their opinions on the housing market and economy. The survey covers everything from home prices and mortgage rates to job security and household income in an effort to determine how consumers feel about buying a home. According to the most recent results, Americans are feeling cautious. In fact, the number of respondents who say it’s a good time to buy a home was down 1 percent month-over-month, while the share who say it’s a good time to sell fell 2 percent. Doug Duncan, Fannie Mae’s chief economist and senior vice president, says Americans are pessimistic about affordability. “More consumers than not see home prices rising further; and slightly more consumers think mortgage rates will increase, rather than decrease, over the next 12 months,” Duncan says. But are they wrong? Well, according to Fannie Mae’s forecast, they might be. Its most recent outlook calls for decelerating home price growth and falling mortgage rates over the next year. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. The declines were significant and dropped rates to the lowest level since May 2023. Joel Kan, MBA’s vice president and deputy chief economist, says demand spiked as a result. “Mortgage rates decreased across the board last week and mortgage application volume reached its highest level since January of this year,” Kan said. “As a result of lower rates, refinance applications increased across all loan types, particularly for VA loans, and were almost 60 percent higher than it was at this time last year and were at its highest level in two years.” Demand for purchase applications saw a more modest 1 percent bump week-over-week. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)