There are many different factors a home buyer has to consider before shopping for a house. Things like what type of home they’d like and where they’d like to live are obviously important. But before a buyer can focus in on the number of bedrooms they’ll need or which neighborhoods they’ll target, they have to figure out whether or not they can afford to buy. Buying a home, after all, is a financial transaction. That means affordability is the first thing to consider. The good news is it’s improving. According to ATTOM Data Solutions first-quarter 2024 U.S. Home Affordability Report, affordability has improved now for two consecutive quarters. “The picture for home buyers is brightening a little again as affordability measures have improved for the second quarter in a row,” Rob Barber, ATTOM’s CEO, says. “With mortgage rates coming down and home prices growing only by modest amounts, it’s gotten a bit easier for average wage earners to afford a home so far this year.” But while affordability has improved, it’s still challenging. ATTOM found median home ownership costs are higher than historical averages in 577 of the 590 counties included in its analysis. (source)

There is no age requirement to buy a home. If you can afford it, you can do it. But while you can buy a home at any age, factors such as cost of living, affordability, the inventory of available homes, and demographics influence at what age people actually do. That’s the basis of a new study from the National Association of Realtors. The study looked at the median age of home buyers in different parts of the country to determine which had the oldest and youngest home buyers. The youngest buyers were found in the Midwest, where the median age was 39 years over the past five years. The Northeast followed closely behind, with a median buyer of 40 years. The West and South had an older median buyer. The reasons for the regional differences vary. For example, the Midwest is the country’s most affordable region, which makes it easier for younger buyers to enter the market. The South, on the other hand, has an older median buyer due mostly to demographics. Older Americans tend to retire to warm weather climates, which drives the median higher in places like Florida, the state with the country’s oldest median buyer at 50 years. (source)

After a contract to buy a home is signed, the sale is considered pending until it closes several weeks later. That’s why pending home sales are considered a good indicator of future home sales. It’s also why the National Association of Realtors tracks them from month to month. Since the vast majority of signed contracts lead to final sales, measuring pending sales offers a peek at where home sales are heading. According to the NAR’s most recent Pending Home Sales Index, the market is heading upward. In fact, pending sales were up 1.6 percent in February from the month before. Lawrence Yun, NAR’s chief economist, says it’s a sign the market is improving. “While modest sales growth might not stir excitement, it shows slow and steady progress from the lows of late last year,” Yun said. “Ongoing job gains are clearly increasing demand along with more inventory.” Results show the Midwest leading all regions, with a 10.6 percent jump in contract signings from the month before. The South also rose, with a 1.1 percent increase. The Northeast and West, on the other hand, saw declines. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved lower last week from the week before. Rates were down for 30-year fixed-rate loans with conforming balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. But while rates dipped, the improvement wasn’t enough to boost demand for mortgage applications, which were mostly flat from one week earlier. Joel Kan, MBA’s vice president and deputy chief economist, says the market is improving but gradually. “Purchase applications were essentially unchanged, as home buyers continue to hold out for lower mortgage rates and more listings to hit the market,” Kan said. “Lower rates should help to free up additional inventory as the lock-in effect is reduced, but we expect that will only take place gradually.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Each month, Fannie Mae’s Economic and Strategic Research Group releases an outlook covering what they see ahead for the housing market and overall economy. In March, the group says they expect the housing market will continue to thaw after a slow 2023. Home sales will trend higher and so will the number of available listings. The group sees affordability constraints continuing, though, with mortgage rates remaining elevated due to inflation and a strong job market. “Hotter-than-expected inflation data and strong payroll numbers are likely to apply more upward pressure to mortgage rates this year than we’d previously forecast, as markets continue to evolve their expectations of future monetary policy,” Doug Duncan, Fannie Mae’s senior vice president and chief economist, says. “Still, while we don’t expect a dramatic surge in the supply of homes for sale, we do anticipate an increase in the level of market transactions relative to 2023 – even if mortgage rates remain elevated.” (source)

New home sales typically account for just 10 percent of total home sales. But with the inventory of available older homes still lower than normal, the new home market has become more active. In fact, according to new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development, sales of newly built single-family homes are now 5.9 percent higher than they were at the same time last year. The improvement comes at a time when home builders are expressing rising confidence in the market and residential construction is rising. But while the numbers are mostly positive, sales in February did fall short of economists’ expectations, with month-over-month results showing sales 0.3 percent below January’s revised totals. Also, the median sales price of new houses sold in February was $400,500. The average sales price was $485,000. (source)

Spring has arrived and so has home selling season, which means now’s the time to start getting your house ready if you’re hoping to get it on the market at the hottest time of the year. According to a new analysis from the National Association of Realtors’ consumer website, mid-April is the time of year when sellers see the most buyers and the fastest sales. The same analysis found most homeowners need at least a month to get their house ready to show. That makes now the perfect time to get started. Danielle Hale, the website’s chief economist, says sellers should start preparing. “Spring is generally the high season for home sales, and buyers tend to be more plentiful earlier in the year,” Hale said. “Because listing a home is a process, sellers should start preparing now so they can list their home at a time when conditions are likely to be most favorable, giving them the best chance of selling their home quickly and at a competitive price.” (source)