Despite Ongoing Pandemic, US Sales of Existing Homes Jumped 20 Percent

Home purchase sales strongly rose in June by 20.7 percent, even after the pandemic caused home sales to slightly decrease in the past three months. However, Coronavirus cases continue to surge, which could prevent the housing market from rebounding further. Real estate prices continue to rise due to a shrinking supply of homes for sale and high demand. 

The National Association of Realtors reported sales of existing homes rose this month to a seasonally adjusted annual rate of 4.72 million. Despite the sharp gain, purchases are still down 11.3 percent from a year ago, when homes had sold at an annual pace of 5.32 million per month. 

However, housing has managed to avoid a deeper slump from the serious recession brought on by Coronavirus. Demand has remained steady and strong among buyers who have been thriving within the downturn of the economy. Furthermore, record-low mortgage rates have helped support affordability and encourage buyers to make a move. Buyers have remained stable, however new listings have declined. Although buyers are in abundance, more sellers need to step up before the real estate market will see an overall year over year increase in home sales. 

The number of property listings has significantly dropped from a year ago to 1.57 million, representing a 18.2 percent drop. June marks the 13th straight month of shrinking supply on an annual basis. It is unlikely the housing industry can advance the overall economy until more sellers enter the market, to balance a high demand of enthusiastic buyers. 

Home buyers would considerably boost the economy, as home buyers usually spend money on new furniture and fix older properties with numerous home repairs. However, their ability to supply a spending boost to the economy is restricted if they cannot find an available house on the market. The limited supply is also increasing prices, despite much of the population struggling with economic uncertainty due to the recession. 

Overall, the combination of stable and constant demand, paired with dramatically lowered mortgage rates has helped birth a 3.5 percent rise in the median price of an existing home over the past year to $295,300.

Home sales rose in the Northeast, Midwest, South, and West last month, however the increases were most concentrated in the West, with a 32 percent gain, along with the South, with a 26 percent gain.

 

The Most Cost-Effective Options When You’re Renovating a Rental Property

Remodeling your rental property has numerous benefits, including attracting new renters and keeping current residents in place. Here are the best and most cost-effective ways to renovate your rental property in a dramatic and powerful way. 

 

`1. Replace Windows

Replacing windows brings intense curb appeal to your unit, while also improving the appearance of the inside of your property. Upgraded windows are a smart way to make a good impression on prospective renters, while offering long-term energy savings due to increased insulation efficiency. 

2. Freshen Paint

One of the most cost-effective remodeling projects for any investment property is to touch up walls and trim with a fresh coat of paint. Choose neutral colors, which resonate with a wider range of prospective residents. 

3. Switch Out Flooring 

Hardwood flooring continues to grow in popularity. Durable and easy to clean with a classic look, renters tend to prefer wood or engineered wood planking to linoleum, tile, and carpet.

Engineered wood is naturally resistant to changes in humidity and temperature. Unlike genuine hardwood, planks don't buckle, shrink, or expand. Thanks to its waterproof qualities, engineered wood flooring is even appropriate for moisture-prone areas such as a front entrance, mud area, or bathroom. 

4. Update Bathrooms

Remodeling bathrooms makes a dramatic and beautiful statement. Consider installing new faucets, shower heads, and fixtures. Look for low-flow versions that cut water consumption by as much as 30 percent. Also consider ceramic floor tiling, and a new tub and toilet. Go with standard porcelain for the tub. Keep in mind that federal standards mandate that all new toilets use 1.6 gallons of water per flush.

5. Remodel Kitchen 

As with the bathroom, a minor kitchen overhaul boasts a significantly more substantial return on investment than a major remodeling project. For example, instead of replacing cabinets in their entirety, simply switch out the doors and update them with new hardware. 

Replace appliances with energy-efficient models and shop around for a new mid-priced sink and faucet set.

Boston Housing Market Set for Quick Recovery

Great news for the Boston real estate industry. A study published by Realtor.com, a national website for real estate listings and information, found that the Boston housing market is the second most recovered out of the 50 largest metro areas in the country as of the week that ended June 13. 

 

Realtor.com’s studies rely on search traffic on the site, median list prices, new listings, and median time on the market. The firm’s data indicate that Boston was on track to see the busiest housing market on record in the spring until the pandemic hit. Overall, data shows the Boston market is experiencing a swifter recovery than the U.S market overall. Asking prices are growing at near double digits, all while sellers have yet to come back in full strength. The number of active home shoppers remains high and continues to increase, lead by lower mortgage rates and a powerful tech sector. Part of the recovery even includes bidding wars. Approximately 64 percent of Boston buyers working with Redfin real estate agents faced competition in May, according to the Redfin real estate brokerage.

 

The Boston real estate market continues to be competitive, simply because there are not enough homes for sale to keep up with the increasing demand. Overall, Boston’s pent-up demand from the condensed spring market and years of limited inventory make it ripe for a quick recovery after the economic shutdown. Realtor.com’s report found that the top five markets that recovered above their January 2020 level were tech hubs: Denver, Boston, Seattle, San Francisco, and San Diego.