{"id":1890,"date":"2021-07-22T21:48:33","date_gmt":"2021-07-22T21:48:33","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=1890"},"modified":"2021-07-22T21:48:33","modified_gmt":"2021-07-22T21:48:33","slug":"todays-real-estate-market-explained-4-key-trends","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/todays-real-estate-market-explained-4-key-trends\/","title":{"rendered":"Today\u2019s Real Estate Market Explained Through 4 Key Trends"},"content":{"rendered":"
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Today\u2019s Real Estate Market Explained Through 4 Key Trends<\/p><\/div>\n

As we move into the second half of the year, one thing is clear: the current real estate market is one for the record books. The exact mix of conditions we have today creates opportunities for both buyers and sellers. Here\u2019s a look at four key components that are shaping this unprecedented market.<\/p>\n

A Shortage of Homes for Sale<\/strong><\/h4>\n

Earlier this year, the number of homes available for sale fell to an all-time low. In recent months, however,\u00a0inventory levels<\/a>\u00a0are starting to trend up. The latest\u00a0Monthly Housing Market Trends Report<\/em><\/a>\u00a0from\u00a0realtor.com<\/em>\u00a0says:<\/p>\n

\u201cIn June,\u00a0newly listed homes grew by 5.5% on a year-over-year basis<\/strong>, and by 10.9% on a month-over-month basis. Typically, fewer newly listed homes appear on the market in the month of June compared to May.\u00a0This year, growth in new listings is continuing later into the summer season, a welcome sign for a tight housing market<\/strong>.\u201d<\/em><\/p><\/blockquote>\n

This is\u00a0good news for buyers<\/a>\u00a0who crave more options. But even though we\u2019re experiencing\u00a0small gains<\/a>\u00a0in the number of available homes for sale, inventory remains a challenge in most states. That\u2019s why it\u2019s still a sellers\u2019 market, giving homeowners immense leverage when they decide to make a move.<\/p>\n

Buyer Competition and Bidding Wars<\/strong><\/h4>\n

Today\u2019s ongoing low supply, coupled with high demand, creates a market characterized by high buyer competition and bidding wars. Buyers are going above and beyond to make sure\u00a0their offer<\/a>\u00a0stands out from the crowd by offering over the asking price, all cash, or waiving some contingencies. The number of offers on the average house for sale broke records this year \u2013 and that\u2019s great news for sellers.<\/p>\n

The latest\u00a0Confidence Index<\/em><\/a>\u00a0from the\u00a0National Association of Realtors<\/em>\u00a0(NAR) says the average home for sale receives five offers (see graph below<\/em>):<\/p>\n

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Average Number of Offers<\/p><\/div>\n

For buyers, the best way to put a compelling offer together is by working with a local real estate professional. That agent can act as your trusted advisor on what terms are best for you and what\u2019s most appealing to the seller.<\/p>\n

Home Price Appreciation<\/strong><\/h4>\n

The competition among buyers is driving prices up. Over the past year, we\u2019ve seen\u00a0home price appreciation<\/a>\u00a0rise across the country. According to the most recent\u00a0Home Price Index<\/em><\/a>\u00a0(HPI) from\u00a0CoreLogic<\/em>, national home prices increased 15.4% year-over-year in May:<\/p>\n

\u201cThe May 2021 HPI gain was up from the May 2020 gain of 4.2% and was\u00a0the highest year-over-year gain since November 2005<\/strong>. Low mortgage rates and low for-sale inventory drove the increase in home prices.\u201d<\/em><\/p><\/blockquote>\n

Rising home values are a big part of why real estate remains one of the top sought-after investments for Americans. For\u00a0potential sellers<\/a>, it also means it\u2019s a great time to list your house to maximize the return on your investment.<\/p>\n

A Rise in Home Values and Equity<\/strong><\/h4>\n

The\u00a0equity<\/a>\u00a0in a home doesn\u2019t just grow when a homeowner pays their mortgage \u2013 it also grows as the home\u2019s value appreciates. Thanks to the jump in price appreciation, homeowners across the country are seeing record-breaking gains in home equity.\u00a0CoreLogic<\/em><\/a>\u00a0recently reported:<\/p>\n

\u201c\u2026homeowners with mortgages (which account for roughly 62% of all properties) have seen their\u00a0equity increase by 19.6% year over year<\/strong>, representing a collective equity gain of over $1.9 trillion, and an\u00a0average gain of $33,400 per borrower<\/strong>, since the first quarter of 2020.\u201d<\/em><\/p><\/blockquote>\n

That\u2019s a major perk for households to leverage. Homeowners can use that equity to accomplish major life goals or move into their\u00a0dream homes<\/a>.<\/p>\n

Bottom Line<\/strong><\/h3>\n

If you\u2019re thinking about buying or selling, there\u2019s no time like the present. Let\u2019s connect to talk about how you can take advantage of the conditions we\u2019re seeing today to meet your homeownership goals.<\/p>\n

Contact us:<\/strong>
\nPHP Houses
\n142 W Lakeview Ave
\nUnit 1030
\nLake Mary, FL 32746
\nPh:\u00a0(407) 519-0719<\/span>
\nFax:\u00a0(407) 205-1951<\/span>
\nemail:\u00a0info@phphouses.com<\/p>\n

Let\u2019s Connect:<\/strong>
\nFacebook<\/a>
\nLinkedin<\/a>
\nTwitter<\/a>
\nInstagram<\/a><\/p>\n

THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.<\/em><\/h5>\n","protected":false},"excerpt":{"rendered":"

The exact mix of conditions we have today creates opportunities for both buyers and sellers. Here\u2019s a look at four key components that are shaping this unprecedented market. Finish Reading Today\u2019s Real Estate Market Explained Through 4 Key Trends<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[69],"tags":[38,15,91,52,25,49,42,20,12,48,28,54,47,19,6],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1890"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=1890"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1890\/revisions"}],"predecessor-version":[{"id":1893,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1890\/revisions\/1893"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=1890"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=1890"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=1890"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}