Rental4Income

  • Home
  • Investor Profile
    • Pre-Approval Form
  • Articles
    • Cash Flow
    • Finance
    • Investment Tips
    • Real Estate Investing
      • Tampa, FL
    • Real Estate Mentor
    • Rental Property
    • Tampa Real Estate News
    • Turnkey Investment Properties
    • Wholesale Real Estate
  • Videos
  • Glossary
  • Properties
  • Testimonials
  • About
    • Investing in Rental Property
  • Contact

September 23, 2021 By Admin

Housing Market Report: August 2021

XRM August 2021 Housing Market Report

National housing market indicators as of August showed housing market activity improving overall. The pandemic has seen one of the tightest housing markets in a long time. Now, after hitting a 40-year low, the housing market is slowly seeing an increase in inventory.

Home prices in the U.S. have climbed at a record pace during the pandemic, with many homes selling above their asking price. The trend continued in August. However, the buyer demand still outpaces the supply; but the growing inventory is giving home shoppers a little breathing room.

Here are the monthly real estate market indicators available at the end of August.

Home Value Index

  • The typical U.S. home value in August is now $303,288 (seasonally adjusted value and includes only the middle price tier of homes).
  • Values for homes in the U.S. have increased 17.7% over 2020.
  • Zillow predicts home prices will rise 12.1% in the next year.

August 2021 Zillow Home Value Index

New Home Sales Showed Modest Gains

  • July’s new single-family home sales are up in all regions of the country except for the Northeast, where they are level.
  • Overall, in July, new single-family home sales increased one percent to 708,000 units (SAAR) from June’s revised pace of 701,000 units. However, this is 27.2% lower than 2020.
  • Average sales for the first half of the year are at a seasonally adjusted rate of 818,000, down slightly from the annual pace in 2020 (822,000). (Sources: HUD and Census Bureau).

Existing Home Sales Increased for the Second Consecutive Month

  • The National Association of Realtors® (NAR) reports that July sales of existing single-family homes (including townhomes, condominiums, and cooperatives) rose 2.0% to 5.99 million units (SAAR) from the revised pace of 5.87 million for June.
  • 1.5% higher than 2020.
  • Average sales for the first half of the year, at 6.07 million (SAAR), are higher than the annual pace for 2020 (5.64 million). (Source: NAR).

New Home Construction Declined

Single-Family Housing Starts:

  • July saw a decline of 4.5% from June’s upwardly revised pace of 1.16 million units.
  • However, July single-family starts were up 11.7% from a year ago.

Multifamily Housing Starts (5+ units):

  • Also in July, there was a decrease of 13.6% (412,000 units, SAAR), from an upwardly adjusted 477,000 units in June.
  • July’s multifamily housing starts were down 16.3% from last year.

Housing Starts:

  • July experienced a decrease of 7.0% to 1.53 million units (SAAR), up 2.5% from 2020.
  • Lumber prices, which were high during the pandemic, have been on a downward trend since June. (Sources: HUD and Census Bureau).

House Price Increases Continue to Accelerate

  • June’s purchase-only house price index estimated that home values increased 1.63 percent from the previous month and 18.8 percent from the previous year. This is up from an 18.1-percent annual gain in May and the thirteenth straight month that annual house price gains have accelerated.
  • The FHFA index shows that U.S. home values are 52% above their peak set in April 2007 during the housing bubble.
  • U.S. home values now stand at 93% above the low point reached in May 2011.

In June, the non-seasonally adjusted (NSA) CoreLogic Case- Shiller® 20-City Home Price Index posted a 1.97% increase in home values. The year-over-year returns of 19.1% were up from an annual gain of 17.1% in May, marking the largest gain in more than 30 years of Case-Shiller data.

According to S&P Case-Shiller, “The last several months have been extraordinary not only in the level of price gains but in the consistency of gains across the country.”

Note: The home price data for both indices are based on real estate sales contracts signed in late April and throughout May, with subsequent closings during June. (The FHFA and CoreLogic Case-Shiller® price indices are released with a 2-month lag.)

Homes For Sale Inventory Increased

  • The listed inventory of new homes for sale was 367,000 units at the end of July, which was up 5.5% from June and 26.1% year-over-year.
  • That inventory would support 6.2 months of sales at the current sales pace, up from 6.0 months in June.
  • Available existing homes for sale in July were 1.32 million, up 7.3% from June but down 12.0% from the 1.50 million units available a year earlier.

Forbearance on Mortgage Loans Remained the Same Week-Over-Week

  • The share of mortgage loans in forbearance was 3.25% the week ending August 22.
  • Down from 7.20% in 2020.
  • The forbearance rate reached a high of 8.55% the week ending June 7, 2020.
  • The Mortgage Bankers Association (MBA) estimates that 1.62 million homeowners are currently in forbearance plans.

The 30-Year-Fixed-Rate-Mortgage (FRM)

  • The 30-year FRM remains below 3.0%.
  • The 30-year FRM reached an average weekly low in August of 2.77% the week ending August 5.
  • The record weekly low-interest rate is 2.65% the week ending January 7, 2021.
  • Prior to March 2020, the record low for the 30-year FRM was 3.31% the week ending November 21, 2012, during the recovery from the Great Recession.

Average Mortgage Rate

Housing Insecurity Due to the Pandemic Remains Elevated

  • The most recent HUD data (8/4/21 to 8/16/21) shows that approximately 15.4% or 6.88 million U.S. renter households are behind on their rent.
  • On average, renter households are 2.3 months behind on their payments.
  • 10.8% of renters are six or more months behind on their payments.
  • HUD estimates that 6.8%, or 5.40 million, U.S. homeowner households are behind on their mortgage payments.
  • 18.4% (1.46 million) homeowners fear they are two months away from foreclosure.

 

© 2021 xpertRealtyMarketing. Sign up to have XRM real estate articles delivered to your website.

Tweet
PinIt

Filed Under: Market Reports

headshot of Jorge VazquezLearn More About Real Estate Investing

The Graystone Newsletter will keep you informed with important information relating to real estate investing. The newsletter includes information we share with our clients about the best places to invest in real estate, the latest trends, and the information you need to know to succeed investing in real estate.

Real estate investors, wholesalers, flippers, real estate agents, and everyone connected to the real estate industry will benefit from the wealth of information we share very month.

For more information about how we process your data, please click here to read our Privacy Policy.

Disclaimer:
RENTAL4INCOME.COM IS A WEBSITE OF GRAYSTONE INVESTMENT GROUP LLC. YOU ARE HEREBY NOTIFIED THAT NEITHER GRAYSTONE INVESTMENT GROUP LLC, NOR ANY OF ITS EMPLOYEES OR SUBSIDIARIES, REPRESENT YOU IN ANY CAPACITY. YOU SHOULD NOT ASSUME THAT GRAYSTONE INVESTMENT GROUP LLC OR ANY OF ITS EMPLOYEES OR SUBSIDIARIES IS A REAL ESTATE BROKERAGE. WE ARE A WHOLESALER, AND ALWAYS ACT AS A SELLER OR ASSIGNOR ON EVERY TRANSACTION.

Want To Learn More About Real Estate Investing?

Sign up for our newsletter, and you'll receive our newest articles!

By clicking this button, you consent to receive emails, calls, and text messages about our products and services at the email address and phone number you provided. You agree that such calls may be made using an automatic telephone dialing system, they may be considered telemarketing or advertising under applicable law, and that you are not required to provide your consent to these calls to make a purchase from us. For more information about how we process your data, please click here to read our Privacy Policy.

Recent Articles

  • How to Get Started in Real Estate Investing
  • What to Expect at Closing
  • How Much House Can I Afford?
  • How Do Interest Rates Affect the Housing Market?
  • What Does a Realtor Do for the Homebuyer?

Get Started Right Now!

Get started investing in real estate with Graystone Investment Group.

For more information about how we process your data, please click here to read our Privacy Policy.

phone Graystone Investment GroupCall (813) 449-4323
Text Graystone Investment GroupSend Text to (813) 600-1658
Graystone Investment Group
3001 N Rocky Point Dr E, Suite 200
Tampa, FL 33607 USA
phone Graystone Investment GroupCall (813) 449-4323
Subsidiary Brands:
Graystone Acquisitions
Graystone Real Estate
Homes4Income.com
Rental4Income.com
RealEstate4Investing.com
Accessibility
Terms of Service
Privacy Policy

Recents Posts

  • How to Get Started in Real Estate Investing
  • What to Expect at Closing
  • How Much House Can I Afford?
  • How Do Interest Rates Affect the Housing Market?
  • What Does a Realtor Do for the Homebuyer?
  • What Does a Realtor Do for the Home Seller?

Categories

  • Articles
  • Cash Flow
  • Finance
  • Investment Tips
  • Market Reports
  • Real Estate Investing
  • Real Estate Market Stats
  • Real Estate Mentor
  • Recent Properties
  • Rental Property
  • Special Events
  • Tampa Real Estate News
  • Tampa, FL
  • Testimonials
  • Turnkey Investment Properties
  • Uncategorized
  • Wholesale Real Estate
Client Evaluation | Investor Profile | Rewards Program | Recent Properties | Pre-Approval Form
Legal Notice | Terms of Service | Privacy Policy
© 2023 GRAYSTONE INVESTMENT GROUP, ALL RIGHTS RESERVED. THE RENTAL4Income LOGO AND BRAND IS THE PROPERTY OF GRAYSTONE INVESTMENT GROUP LLC
DISCLAIMER: RENTAL4INCOME.COM IS A WEBSITE OF GRAYSTONE INVESTMENT GROUP LLC. YOU ARE HEREBY NOTIFIED THAT NEITHER GRAYSTONE INVESTMENT GROUP LLC, NOR ANY OF ITS EMPLOYEES OR SUBSIDIARIES, REPRESENT YOU IN ANY CAPACITY. YOU SHOULD NOT ASSUME THAT GRAYSTONE INVESTMENT GROUP LLC OR ANY OF ITS EMPLOYEES OR SUBSIDIARIES IS A REAL ESTATE BROKERAGE. WE ARE A WHOLESALER, AND ALWAYS ACT AS A SELLER OR ASSIGNOR ON EVERY TRANSACTION.
Internet Marketing by Image Building Media.