The index of pending home sales in May shot up ⬆️ 44.3% as compared to April, per the National Association of Realtors. Some sellers are still reluctant to sell due to coronavirus and the economy. However, buyers will have less competition and will be offered lower prices sooner rather than later if this upward trend continues.
Existing home sales in May were down. But do not be fooled, existing home sales reflect when sales are closed, meaning May’s existing sales reflect what was happening in March and April 😯. New home sales in May increased, and reflect when a contract is signed, i.e what actually went on in May.
Never considered moving near Silicon Valley due to incrementally increasing rent? Tech companies’ long-term remote work plans are forcing workers to leave the city. Rent prices in San Francisco have dropped an unprecedented amount, so look again 🧐.
An extra bedroom can mean a lot in today’s world: a workout space, a quiet area to take a call, or even a home office. Some tenants are upgrading to larger apartments and think it is worth the extra buck 💲. Tenants desiring more space could be the first bright spot for landlords in an uncertain rental housing picture.
After the Great Recession, it took 10 years for purchase demand to rebound 🔙 to pre-recession levels. In this crisis, it took less than ten weeks, per Freddie Mac. It is not a bad moment to still take advantage of low mortgage rates.