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    This Week In Real Estate – November 22, 2020

    This Week In Real Estate

    Homebuilder Confidence Soars In November.

    According to the U.S. Department of Housing and Urban Development, this week in real estate, the pace of single-family starts in October was the highest production rate since the spring of 2007. As a result, homebuilder confidence has soared to a 35-year high in November. Below are a few newsworthy events from the third week of November that influence our business:

    Existing-Home Sales Jump 4.3% to 6.85 Million in October.

    Existing-home sales continued to trend upward in October, marking five consecutive months of month-over-month gains, according to the National Association of Realtors. All four major regions reported both month-over-month and year-over-year growth. Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums, and co-ops – increased 4.3% from September to a seasonally-adjusted annual rate of 6.85 million in October. Overall, sales rose year-over-year, up 26.6% from a year ago (5.41 million in October 2019). “The surge in sales in recent months has now offset the spring market losses,” said Lawrence Yun, NAR’s chief economist. “With news that a COVID-19 vaccine will soon be available, and with mortgage rates projected to hover around 3% in 2021, I expect the market’s growth to continue into 2021.” Yun forecasts existing-home sales to rise by 10% to 6 million in 2021. Full Story…

    Single-Family Starts: Best Pace Since Spring of 2007.

    Single-family starts experienced continued gains in October, according to data from the U.S. Department of Housing and Urban Development and the Census Bureau. Single-family construction is up 8.6% year-to-date. The pace of single-family starts in October was the highest production rate since the spring of 2007. Single-family building increased 6.4 percent to a 1.18 million seasonally adjusted annual rate. The October reading of starts was consistent with surging builder confidence, as single-family construction rises to meet strong buyer traffic, supported by low interest rates, a changing geography of demand, and a growing number of sales that have not started construction. As an indicator of the strength of the housing, there are now 564,000 single-family homes under construction. This is 8% higher than a year ago, despite the declines for construction starts in the spring. Full Story…

    MBA Predicts Record Purchase Mortgage Volume in 2021.

    Although the MBA expects decreased refinancing in 2021 and a decline in overall origination to around $2.56 trillion, that would still be the second-highest origination total in the last 15 years. The rebounding economy is likely to mean higher mortgage rates, with the MBA forecasting 2.9% by the end of 2020, rising to 3.3% by Q4 2021. The MBA is forecasting a rise in purchase originations to $1.59 trillion, which would break the previous record of $1.51 trillion set in 2005. However, the MBA sees refinances decreasing to $971 billion. For 2020, the MBA is estimating $3.39 trillion in mortgage originations – the highest since 2003 and a 50% increase from 2019. That includes an expected 91.5% jump in refinance originations to $1.97 trillion – also the highest since 2003 – and a forecasted 16% rise in purchase originations to $1.42 trillion, the highest since 2005. Full Story…


    Originally compiled & posted by Jason Waugh on the Berkshire Hathaway HomeServices Northwest Real Estate company blog.

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    Mitch Darby

    I am a real estate broker, architect (both licensed in the State of Oregon), and life-long Oregonian. If you are looking to buy or sell, I can help! I have Northwest Knowledge and am proud to be associated with Berkshire Hathaway HomeServices - Real Estate's Forever Brand!

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