Sixty percent of home buyers and sellers say they’re optimistic about the housing market in 2021, a leap above 2020’s numbers, according to a new survey commissioned by Redfin. High earners and homeowners are the most upbeat, shows the survey of more than 1,400 people, which was conducted in November and December.
Nearly three-quarters of respondents who earn more than $150,000 say the housing market will fare better in 2021 than 2020, the highest of any other income group. Also, 64% of homeowners believe the housing market this year will outperform last year. Sellers express more optimism than buyers; recent double-digit gains in home prices likely explain seller enthusiasm.
Continue… https://magazine.realtor/daily-news/2021/01/14/poll-consumers-expect-even-hotter-2021-market

If you are in Hibbing and looking for an outdoor activity – check out the skating sidewalks at Bennett Park.

Kitchen storage is a top priority among renovating homeowners, finds the 2021 U.S. Houzz Kitchen Trends Study, based on a survey of more than 2,000 homeowners planning or in the midst of a kitchen remodel. Renovators are paying closer attention to their cabinet and pantry storage.
Many of the surveyed homeowners turned their attention to upgrade their kitchen cabinets, either replacing them or refacing the ones they already have. Also, the percentage of homeowners adding or upgrading a pantry space is on the rise. Nearly half of homeowners upgraded their pantry cabinets, and one in eight added a walk-in pantry—both up compared to last year, the survey finds.
Continue…https://magazine.realtor/daily-news/2021/01/12/greater-kitchen-storage-is-in-demand

2020 Was a Year Where Home Design Took Center Stage

December 31, 2020

Americans are taking a greater interest in the aesthetics of their spaces. Share these trending stories online to connect with homeowners interested in sprucing up their spaces and help potential buyers envision their new home.

The following are the top five home design stories at REALTOR® Magazine for 2020.

1. How to Best Navigate New Color Trends

Bold, saturated colors are back after years of calm beiges, soothing grays, and varied whites dominating the interior design scene. What’s a homeowner to do?

2. A Myriad of Home Trends to Gain Momentum in 2021

As homeowners continue to stay in, avoiding the latest spikes in coronavirus numbers, many seek new ways to improve their abode’s function and aesthetics.

3. Quarantine Produces ‘Horrors’ of Home Design

REALTOR® Magazine’s Styled, Staged & Sold blog counts down some of the cringe-worthy decorative choices people are making while hunkering down at home.

4. Improvements First-Time Homeowners Should Tackle First

Owning a home is a significant financial investment for your clients. These 10 tips will help them prepare for maintenance and repair costs, too.

5. Presale Renovations Take Off

For equity-rich sellers who need more than a fluff before they put their home on the market, companies are now offering renovation management and funding.Source: REALTOR® Magazine

Between 2018 and 2028, the number of households is projected to increase by up to 12 million. Generation X and millennials are expected to drive most of that household formation. As they replace dropped households over that time, the two generations could add nearly 25 million new households by 2028, according to the CoreLogic Insights Blog.
The largest cohort of millennial buyers have yet to surface on the market, researchers note. That segment, from ages 28 to 30, numbers nearly 15 million and is approaching the average age to buy a first home, 33 years old, CoreLogic reports.
Continue… https://magazine.realtor/daily-news/2021/01/05/gen-x-millennials-likely-to-keep-home-buying-strong-for-years-to-come

Homes are getting smarter, and real estate pros are discovering it’s important to stay ahead of the trends to present the “new” American home to clients. And as the workplace went virtual this year, videoconferencing along with other virtual tools rose in importance.
REALTOR® Magazine highlights its top five technology articles in 2020
1. A Vision for the Greenest Homes Ever
This year’s New American Home, an annual concept build at the International Builders’ Show in Las Vegas, reflects the most technologically advanced methods of achieving energy efficiency.
Continue… https://magazine.realtor/daily-news/2020/12/31/smart-homes-zoom-etiquette-top-2020-tech-interests

Contract Signings Surge to Record High for November

December 30, 2020

Real estate pros are quickly submitting offers for clients as the buyer frenzy, unusual for the winter season, continues.

Sales have slowed slightly from the high levels recorded this fall. Pending home sales slid in November by 2.6% compared to those in October, according to the National Association of REALTORS®’ Pending Home Sales Index, released on Wednesday. November’s decline marked the third consecutive month for monthly decreases in pending home sales.

“The latest monthly decline is largely due to the shortage of inventory and fast-rising home prices,” says Lawrence Yun, NAR’s chief economist. “It is important to keep in mind that the current sales and prices are far stronger than a year ago.”

Pending home sales are still up 16.4% compared to a year ago. All major regions are posting double-digit year-over-year increases.

“The market is incredibly swift this winter with listed homes going under contract on average at less than a month due to a backlog of buyers wanting to take advantage of record-low mortgage rates,” Yun says.

NAR’s Pending Home Sales Index reached a reading of 125.7 in November—an all-time high. An index reading of 100 is equal to the level of contract activity in 2001.

Yun predicts home sales to continue to perform strongly in 2021. He expects existing-home sales to increase about 10% and new home sales to surge by 20% in the new year.

“Economic growth is guaranteed from the stimulus package and from vaccine distribution, but high government borrowing will put modest upward pressure on interest rates,” Yun says.

 Source: National Association of REALTORS®

Mortgages Are Taking Longer to Close

December 28, 2020

Mortgages are now taking an average of nearly two months to close as lenders face a surge in business spurred by low mortgage rates and high demand.

The average time it took a mortgage to close in November was 55 days, according to Ellie Mae’s Origination Insight Report.

The 55-day average wait is proving problematic for borrowers who might lock in their mortgage rate for a 30-day or 45-day period. The rate lock will hold a low mortgage rate for a specified time. But if it expires before a buyer closes, buyers could get stuck paying a higher interest rate on their mortgage or have to pay another fee to extend their rate lock, The Motley Fool reports.

“A big reason why mortgages have been delayed lately is volume,” The Motley Fool reports. “Low interest rates are fueling demand for new home purchases and refinances, and mortgage lenders are incredibly busy trying to keep up with everyone.”

Home buyers’ anxiety levels could increase as the frustrating wait to close lengthens, but buyers likely can do little if a mortgage is delayed by a lender processing their loan. However, they could possibly jumpstart the process by making sure they respond to all the information the lender requests promptly and at the time of the application, The Motley Fool reports. The sooner they submit all the requested information, the quicker lenders can get to work processing the mortgage.

The latest REALTORS® Confidence Index report from November shows that 30% of contracts last month were delayed but did eventually reach settlement. The most common delays were related to obtaining financing, which contributed to about 26% of those instances.Source: “The Average Mortgage Now Takes Almost 2 Months to Close,” The Motley Fool (Dec. 26, 2020) and “REALTORS® Confidence Index: November 2020,” National Association of REALTORS® (November 2020)  

As the pandemic wears on, more homeowners are looking to spruce up their nests by searching for home design inspiration online.
Houzz, a home remodeling and design resource site, recently analyzed the most popular home design searches of the year to determine the most popular trends during the pandemic began. The two standout trends relate to the outdoors and creating cozy getaways at hom
Looking at searches from May to July, Houzz found that users’ interest in the outdoors doubled during that time. The design terms that saw the biggest growth:
Continue… https://magazine.realtor/daily-news/2020/12/28/the-most-popular-home-design-searches