Despite the record-low ⬇️ supply of homes for sale, mortgage applications to purchase a home spiked ⬆️ 33% from a year ago (per the Mortgage Bankers Association’s index). Buyers are getting the help they need, but the bigger question is how long this will last.
People with low-income jobs in industries like services and hospitality were more severely affected by coronavirus shutdowns, and it’s showing the housing market 🏠. High-income homebuyers are taking advantage of low mortgage rates, while things have only gotten worse for low-income workers.
According to the Fannie Mae survey, the share of consumers who think it’s a good time to buy a home increased ↗️ from 52% to 61% from last month. Many still believe it’s a bad time to sell 👎, but the recent rebound in home purchase activity left consumers optimistic.
The uncertainty surrounding the pandemic has scared away many foreign investors 😟. Homeowners in major coastal cities like New York and LA may be disappointed, but local buyers can let out a sigh of relief 😅.
A refresher on where major cities stand in their residential real estate value, per LendingTree. New York, LA, San Francisco, Chicago, and D.C make the top 5. New York’s $2.8 trillion value just edges the UK’s GDP in 2019 🤯.