65% of Buyers Would Make Offer Within 3 Days

121 NW Bond St, Bend, OR 97703
Presented by Sheila Balyeat | Offered at $1,495,000 | MLS# 220141269

From REALTOR® Magazine

Homebuyers realize they need to be quick with their offers in today’s competitive housing market, a new report says. Sixty-five percent of buyers recently surveyed said they’d make an offer within three days of viewing it if they’re interested. Twenty percent say they’d make an offer immediately, according to Bank of America’s new 2022 Homebuyer Insights Report, based on about 2,000 responses.

Homes spent an average of 17 days on the market in March. Eighty-seven percent of homes sold in March were on the market for less than a month, according to National Association of REALTORS® data.

Higher home prices and mortgage rates are straining buyers’ budgets. A home is often the most expensive purchase people make in their lifetime. Buyers are finding they have to budget wisely or increase the amount of money they can devote toward homeownership.

Some buyers say they’ve had to moonlight or take on freelance work to try to earn more money. Fifty-six percent of home buyers surveyed said they are willing to consider a second job to earn supplemental income for a home purchase, according to the Bank of America survey. One-third of prospective buyers said they’d consider starting an online store to sell handcrafted pieces or selling some of their belongings to increase the amount of money they have to purchase a home.

Homebuyers also are showing some willingness to compromise to move toward homeownership, including by:

· Moving to an up-and-coming neighborhood (82%)

· Buying a home further from entertainment, restaurants, and shopping (79%)

· Buying a smaller home (71%)

· Forgoing outdoor space (70%)

Full article on REALTOR® Magazine


Contract Signings Slide—But Not Due to Falling Demand

5990 NW Homestead Way, Redmond, OR 97756
Presented by Tarris Rogers | Offered at $939,900 | MLS# 220140916

From REALTOR® Magazine

Pending home sales fell in February for the fourth consecutive month, but the decline isn’t due to waning demand from eager home buyers. In fact, it’s just the opposite: Competition is growing fiercer, even as buyers face record-low inventory.

The National Association of REALTORS®’ Pending Home Sales Index—a forward-looking indicator of home sales based on contract signings—fell 4.1% month over month in February and 5.4% annually. All four major regions of the U.S. registered a decline in annual contract activity last month. “Buyer demand is still intense, but it’s as simple as ‘one cannot buy what is not for sale,’” says NAR Chief Economist Lawrence Yun.

Buyers are facing limited choices, higher home prices, and rising mortgage rates, which has led to a 28% annual increase in mortgage payments, according to NAR. Still, many aspiring home buyers are in a rush to get ahead of further rate increases that are likely on the horizon.

Yun is forecasting that 30-year fixed mortgage rates will likely average about 4.5% to 5% for the remainder of the year. He also is forecasting a 7% reduction in home sales in 2022 compared to 2021, partially due to higher costs pricing out more home buyers. “It is still an extremely competitive market, but fast-changing conditions regarding affordability are ahead,” Yun says. “Consequently, home sellers cannot simply bump up prices in the upcoming months but need to assess the changing market conditions to attract buyers.”

Full article on REALTOR® Magazine


A Record-Month for Bidding Wars in the U.S.

18000 Sarah Hill Ln, Lake Oswego, OR 97035
Presented by Laura Piccard & Drew Quinn | Offered at $1,999,900 | MLS# 21201774

From Mansion Global

There’s no end in sight to the intense competition for homes that’s upended the U.S. real estate market since the start of the pandemic—especially in the entry-level luxury market.

In February, homes listed between $1 million and $1.5 million recorded the highest bidding-war rate of 76.6%, according to the Redfin report Friday, that analyzed home offers written by its agents. Nationally, a record 68.6% of all homes saw bidding wars on a seasonally adjusted basis.

The percentage of homes facing bidding wars has generally been increasing over the last two years. In April 2020, 32.7% of homes experienced bidding wars compared to 60.2% in February 2021. Even though the growth has been slower since 2021, this year’s performance keeps breaking records.

Full article on Mansion Global


State-by-State Breakdown of Fourth-Quarter Equity Gains

2238 NW Trout Ct, Camas, WA 98607
Presented by Connor Zuvich | Offered at $2,995,000 | MLS# 22389470

From REALTOR® Magazine

Rising home prices have brought rising equity gains for homeowners. In the fourth quarter, the average homeowner nationwide gained about $55,300 in equity over the past year, according to a new analysis released by CoreLogic, its latest quarterly “Homeowner Equity Insights” report.

Western state homeowners are continuing to see some of the largest equity gains by dollar value.

For example, Hawaii, California, and Washington saw the largest increases in average equity gains in the fourth quarter. Hawaii posted an average $128,300 annual gain, followed by a $117,000 increase in California, and $95,500 in Washington.

Full article on REALTOR® Magazine


Demand for U.S. Vacation Homes Expected to Remain Strong ‘Well Into This Year’

70470 Twistedstock GM12, Black Butte Ranch, OR 97759
Presented by The Arends Realty Group | Offered at $1,195,000 | MLS# 220136241

From Mansion Global

Remote work and low-interest rates continue to push U.S. home buyers toward vacation homes.

Demand for secondary residences increased 77% in December compared to pre-pandemic levels, according to a report Thursday from Redfin.

“The wealthy are still flush with cash and have access to cheap debt, which is why second-home purchases remain far above pre-pandemic levels,” Daryl Fairweather, Redfin’s chief economist, said in the report.

Interest has been increasing after hitting a low in August, although December marked a slight decline from the previous month, when demand was up 80%, the data showed. The record was set in January 2021, when demand rose 92% over pre-pandemic levels.

Last month’s slowdown is attributable to the holiday season, and does not necessarily mean demand is dwindling, according to the report. On the contrary, Ms. Fairweather predicted demand for vacation properties will be strong in 2022.

“While interest in second homes is stabilizing after the big boom in the second half of 2020 and the beginning of 2021, I expect demand to remain high well into this year,” she continued. “Remote work isn’t going anywhere and mortgage rates are still quite low.”

Redfin analyzed seasonally adjusted mortgage-rate lock data from real estate analytics firm Optimal Blue for the report. A mortgage-rate lock is an agreement between a lender and a buyer that freezes an interest rate for a specified amount of time. Home buyers specify if they are looking to finance a primary home, a second home or an investment property, and about 80% of mortgage-rate locks result in a home purchase.

The report did not break down demand by region.

Full article on Mansion Global


Top 25 Places to Buy a Vacation Home

2169 Forest Dr, Seaside, OR 97138
Presented by Sally Conrad | Offered at $659,000 | MLS# 21687504

From REALTOR® Magazine

Vacation homes are in demand since the pandemic, but which hot spots are consumers targeting that offer some of the best investment potential?

Vacasa, a vacation rental management platform, released its 2021 Top 25 Best Places to Buy a Vacation Home report, identifying the top U.S. destinations for purchasing a vacation rental property. Among other factors, researchers factored in average cap rate or yearly rate of return in determining the rankings.

“Market conditions are always shifting, but the accelerated and lasting adoption of short-term rentals during the pandemic has had a clear impact on second-home sales,” said Shaun Greer, vice president of sales and marketing at Vacasa. “The spike in guest demand and preference for new, more remote destinations is changing where prospective buyers can find the best investment properties.”

Gatlinburg, Tenn., topped this year’s list, climbing four spots from 2020. Newcomer cities claimed more than half of the spots in 2021, including Deep Creek Lake, Md., Cle Elum, Wash., Litchfield Beach, S.C., and Twentynine Palms, Calif.

The following are the top 25 places to buy a vacation home in 2021, according to Vacasa’s rankings:

  1. Gatlinburg, Tenn.: $320,111 (median home sale price)
  2. St. Augustine, Fla.: $365,576
  3. Gulf Shores, Ala.: $402,905
  4. Dauphin Island, Ala.: $382,699
  5. Norris Lake, Tenn.: $343,907
  6. Blue Ridge, Ga.: $290,934
  7. Palm Springs, Calif.: $539,370
  8. Deep Creek Lake, Md.: $439,367
  9. Seaside, Ore.: $466,086
  10. Ludlow, Vt.: $346,950
  11. Big Bear, Calif.: $372,667
  12. Rockaway Beach, Ore.: $330,831
  13. Cle Elum, Wash.: $551,586
  14. Big Sky, Mont.: $850,000
  15. Twentynine Palms, Calif.: $263,897
  16. Killington, Vt.: $317,336
  17. Bear Lake, Utah: $383,734
  18. Litchfield Beach, S.C.: $499,259
  19. Pagosa Springs, Colo.: $361,320
  20. Banner Elk, N.C.: $331,290
  21. St. George Island, Fla.: $471,501
  22. Ellijay, Ga.: $281,402
  23. Florissant, Colo.: $367,000
  24. Corolla, N.C: $608,953
  25. Holden Beach, N.C.: $580,847

View more information on each place as well as the cap rates at vacasa.com.

Full article on REALTOR® Magazine


Demand for Vacation Homes Is Still Strong

21690 Butte Ranch Road, Bend, OR 97702
Presented by Mark Garcia | Offered at $1,999,999 | MLS# 220116465

From Keeping Current Matters

The pandemic created a tremendous interest in vacation homes across the country. Throughout the last year, many people purchased second homes as a safe getaway from the challenges of the health crisis. With many professionals working from home and many students taking classes remotely, it made sense to see a migration away from cities and into counties with more vacation destinations.

The 2021 Vacation Home Counties Report from the National Association of Realtors (NAR) shows that this increase in vacation home sales continues in 2021. The report examines sales in counties where “vacant seasonal, occasional, or recreational use housing account for at least 20% of the housing stock” and compares that data to the overall residential market.

Their findings show:

  • Vacation home sales rose by 16.4% to 310,600 in 2020, outpacing the 5.6% growth in total existing-home sales.
  • Vacation home sales are up 57.2% year-over-year during January-April 2021 compared to the 20% year-over-year change in total existing-home sales.
  • Home prices rose more in vacation home counties – the median existing price rose by 14.2% in vacation home counties, compared to 10.1% in non-vacation home counties.

This coincides with data released by Zelman & Associates on the increase in sales of second homes throughout the country last year.

As the data above shows, there is still high demand for second getaway homes in 2021 even as the pandemic winds down. While we may see a rise in second-home sellers as life returns to normal, ongoing low supply and high demand will continue to provide those sellers with a good return on their investment.

Full article on Keeping Current Matters