Low mortgage rates and high demand have kept our market busy this summer.
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What’s the latest news from our real estate market as we make our way through August 2020? While we did see a slowdown during the shelter-in-place period, real estate sales remained steady. In fact, our team had our best July ever in terms of homes sold, and most of this was due to pent-up demand.
There are still a lot of first-time buyers and people who are buying their final home out in the market because interest rates are so low. On August 7, mortgage-backed securities were at an all-time high, which resulted in the lowest interest rates in U.S. history. Even people who bought homes just a few months ago are already refinancing. Our mortgage partners are seeing a lot of refinancing in general, so now might be a good time for you to refinance as well.
According to CoreLogic’s latest national market report, home prices rose 1% from May to June. Year over year, they rose 4.9% during that time. The states with the highest year-over-year increases were as follows:
- Idaho: 10.5%
- Montana: 9.8%
- Missouri: 8.5%
- Arizona: 8.5%
The big story from CoreLogic, though, was their forecast. They predicted that home prices would increase by 0.1% from June to July (those numbers haven’t been released yet) and fall 1% over the next 12 months. That’s a big improvement from the 6.6% decrease they previously forecasted, and there are a couple of reasons why things changed.
Our team had our best July ever in terms of homes sold, and most of this was due to pent-up demand.
First, the projected unemployment rates throughout 2020 showed improvement. Second, as mentioned above, low mortgage rates and declining inventory have kept buyers coming to the market. We hope these factors will keep buyers and sellers busy moving forward.
While these are different times for all of us, the Janice Overbeck Real Estate Team is committed to being your resource for the marketplace—not just with homes and mortgages but by connecting you to other business owners who can service whatever you need.
If you have other real estate questions or there’s anything we can help you with, feel free to call or email us. We’d love to hear from you.