In a competitive market – where there are more home buyers than there are homes for sale – buyers often have to offer to pay more for a house than the seller is asking. By raising their offer, buyers better the odds that theirs will be the one chosen and they’ll get the house, rather than losing it to another buyer. In recent years, this type of bidding war has been common. And that competition between buyers was a primary factor pushing prices upward. However, according to a new analysis, last year was different. In fact, the number of homes that sold for an amount above the seller’s asking price fell to a three year low in 2019. Just 19.9 percent of homes sold above list price last year, which was lower than any year since 2016. Part of that was due to a housing market slowdown that returned things to a more normal pace. Inventory improved, the market was better balanced, and home price growth became more in line with historic norms. But, going into this year’s spring selling season, rising buyer demand and fewer homes for sale means interested buyers should be prepared for competition, as bidding wars may heat up once again. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The decline brought rates to their lowest level since October 2016. Joel Kan, MBA’s associate vice president of economic and industry forecasting, said rates fell further due to concern about the coronavirus. “The 10-year Treasury yield fell around 20 basis points over the course of last week, driven mainly by growing concerns over a likely slowdown in Chinese economic growth from the spread of the coronavirus,” Kan said. “This drove mortgage rates lower, with the 30-year fixed-rate decreasing for the fifth time in six weeks … Refinance activity jumped as a result, with an increase in the number of applications and a spike in the average loan amount.” Purchase activity, on the other hand, fell week-over-week, though it remains 11 percent higher than last year. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

From the time they’re born, children rely on their parents for support. Whether it’s help figuring out their math homework or how to ride a bike, children need their parents’ guidance to find their way in the world. And, according to a new survey of millennials, that parental help extends to the home buying process as well. In fact, survey results show that 37 percent of potential millennial home buyers said they regularly ask their parents for advice about buying a home and nearly half said their parents are helping them financially by contributing to their down payment fund, helping with closing costs, monthly mortgage payments, or co-signing their loan. The survey – which focused on millennials planning to buy their first home this year – asked for their perceptions of the buying process, their home buying plans, and how their feelings about homeownership were shaped by their past. For example, 47 percent of respondents said growing up during the financial crisis and housing crash has made them nervous to buy a house. Despite their misgivings, though, 68 percent said it’s a good time to buy, and just over half said they’re actively looking for a home to buy. (source)

Buying a home can be equal parts exciting and stressful. The thrill of starting fresh in a new house in a new neighborhood is undeniable. But the buying process, financing, and moving can cause anxiety, especially for buyers that haven’t been through it before. So what are the factors that cause prospective home buyers the most stress? Well, according to one recent survey, today’s buyers have some pretty specific concerns. The first is financing. Buying a home is major financial transaction and the process of securing a loan can seem complex and daunting. After all, borrowing that much money isn’t something to be taken lightly. So it’s natural that buyers might have some concerns when committing to a long-term loan. The other major stress point for prospective buyers is selling their existing home. Getting a house ready to sell, showing it, and timing the sale to coincide with an upcoming move can be overwhelming. That’s no surprise. There are a lot of unknowns and not knowing how everything will play out naturally can cause some stress. That’s why it’s so important to hire experienced real-estate professionals to help you through the process. A knowledgable guide can alleviate stress and ensure a smooth and successful home buying experience. (source)

Choosing a home to buy means considering everything from whether the roof is in good condition to whether the neighborhood fits your needs and lifestyle. And, since you’re unlikely to find a home that checks every box on your wishlist, you have to prioritize. Are good schools worth sacrificing the big backyard you’ve always wanted? Can you stand a longer commute in order to live closer to family and friends? In short, you’ve got to make choices about what’s most important to you. One factor that seems to be a priority for today’s buyers is walkability. In fact, according to one recent analysis, home buyers are willing to pay nearly 25 percent more for a home that is within walking distance to amenities like shopping, entertainment, and recreation. That works out to nearly $80,000 more than a similar home in a more car-dependent neighborhood. But, while home buyers are clearly interested in living in neighborhoods close to the things they need, the premium they’re willing to pay has fallen over the past few years. In fact, since 2016, the premium buyers pay for homes in walkable neighborhoods has declined 2.3 percent. (source)