Lawrence June, National Association Of Realtors, Yahoo Finance discussed on NJ Diet
Weekend for our very special show Scary things, a show we've done for more than a decade all about the things in real estate. Might scare you mortgages down payments and more. Things that obviously pale in comparison to the pandemic. But still things that matter on today's show will explain howto overcome those real estate fears and thrive in today's red hot market. Scary things is straight ahead. But first, let's go to the real estate today newsroom with Bill Thompson HIBEL Hi, Steven. Housing starts were up 1.9% in September, the government says now that may be slightly below what Wall Street was expecting, But analysts are still encouraged. Building permits were up over 5%. Charlie Doherty, an economist with Wells Fargo, who covers Housing, told Yahoo Finance. If the outlook is still very bright, we still have really low mortgage rates. We have this shift towards for space being needed. And then we also have this ready and waiting wave of first time home buyers. Coming into the market, so that's gonna keep housing starts float over the next few years. Meanwhile, builder confidence has hit another new record. The National Association of Homebuilders. Wells Fargo Housing Market Index for October came in at a reading of 85 up two points from the records at the previous month, and a number of her 50 is considered positive. And the H B C E O. Jerry Howard, also speaking on Yahoo Finance, said the builders right now are riding a wave of social change in the wake of the pandemic of civil unrest. The talk ofthe urban areas increasing taxes, the notion of owning a home in the suburbs. The excerpts and even in rural areas is really taking off with the American consumer now one of the strongest headwinds that builders have been facing all years the skyrocketing price of lumber, But now there are indications the prices of Coming back down from April to September. Lumber prices rose 170%, adding some $16,000 to the price of a new home. But now thanks to increased timber production, the website trading economics dot com reports that in some cases, prices have come down as much as 45% from their September. Hi While we're speaking of new records being set look at mortgage rates, which recently fell to another new record low, according to Freddie Mac. A 30 year fixed rate dipped to an average 2.81%. It was the 10th record set this year. The previous mark of 2.86% was set in mid September. But not every would be home buyer can take advantage of those incredibly low rates, says realtor dot com senior economist George Rock to affordability and tightening credit are weighing on borrowers. Mortgage applications decline. With both purchases and refinances experiencing setback, experts say it's those low mortgage rates that are helping drive home prices higher and higher. Coming up in half an hour. Buyer demand is insane, says one expert. So how long will it last? Steven back to you? Thanks, Bill. And we have the latest information on contract signings for you today and a somewhat surprising result because the National Association of Realtors reports that in September pending home sales declined slightly 2.2% compared to August. But compared to one year ago pending home sales shot up 20%. No, As you know, pending home sales represent home purchase contracts that have been signed but which have not yet gone to closing. Joining us now with the latest pending home sales report is Lawrence June, the chief economist at the National Association of Realtors. Oars, Lawrence, Welcome to real estate today. Hello, Stephen. Thanks for having me on the show. We are so glad you could join us. So Lawrence, a slight Rick Klein month over month in pending home sales. What's going on with that? Not a concern at all. Considering that choir month he was an all time high. So a slight step back stealing, implying a very strong condition. We know that market is short ofthe inventory, with many realtors indicating that it's their head 20% more inventory or even 30% more inventory. Additional amount home cells can be conducted. Right now. The shortage of inventory, maybe hampering some increases and pending contracts. I see. And of course, I would imagine that this slight decline. Does not reflect any change in demand because buyers want to get AH, house. It's just as you said, inventory the competition in the marketplace. And maybe even rising prices, you know, just consider the Sept of 29 10 when the unemployment rate wass Christian generational, low figures, home shows at solid conditions, and if someone had mentioned that in 2021 20% higher, everyone was so wow, that is amazing my high number and that's what we have. So these are very solid numbers, but he could even be higher. If we had more inventory. I see And let's highlight what you just said Lawrence. Year over year pending home sales were up 20%. That is huge. You know the region, saying 28% game the lit wass 18% South 20% West 19. So not much difference other than the Northeast area, sewing a rebound after being suppressed, and it could be due to the fact that many people indeed Manhattan religion they Howard didn't song the demand for homes in Connecticut very strong in northern New Jersey, very strong or even out of Pennsylvania. Very strong, So I think you know, T's region, It seems some migration off people who believe they can work from home. And don't have to come to Manhattan on every single day. So that is being vested in the Northeast region. That's interesting, and that also is probably happening and other big cities across America. Chicago, San Francisco, Dallas, Ella And many people there realized they could now work from home so they are going farther and farther out. The interesting part is that if one looks at the home prices and downtown areas in the city convention Is actually rising. What's happening is that suburban homes are rising even faster, so that the man is clearly a tilted more strongly. Who's the suburbs every year or more.