Summer as the New Spring

Why real estate is ‘the next toilet paper’

As the American economy slowly begins to reopen, we are faced with challenging and unsure times ahead, however, mortgage application rates have increased.  Mortgage applications to purchase a home rose 6% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.  This is just 1.5% lower than one year ago and a great recovery from the previous month when purchase volume was down 35% annually.  This is an indicator that buyers are returning to the market sooner than expected even amidst business shutdowns and job losses.

According to Brian Buffini, a top-rated Realtor and founder of lead-generation systems business, Buffini & Co., “despite a continuing inventory shortage, the current housing market is stable in several ways. For instance, the number of first-time buyers is increasing, and they don’t have to compete against investors anymore.  Housing prices are expected to rise 1 percent to 2 percent because of the housing shortage, and 3.5 percent, 30- year fixed interest rates are sure to lure people in.”  

This is promising news as the economic shutdown has greatly impacted our busiest time of the year.  The Spring market is crucial to the real estate industry and this year may be different, however, we may still see those busy days ahead.  “Spring is gonna hit the summer, ladies and gentlemen, that’s what’s gonna happen,” Buffini said. “The phrase they’re saying is, ‘Real estate is the next toilet paper.’ When the houses are on the market, people will be buying them left, right and center.”

As an industry, we need to stay calm and positive and continue on in our usual ways.  Continue to help buyers find their new homes and keep the market going strong.

For more information:

https://www.cnbc.com/2020/05/20/weekly-mortgage-applications-point-to-remarkable-bounce-in-homebuying.html