Existing Home Sales Up 25.8% Year over Year

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Mortgage and Lending with The Federal Savings Bank/Lending in 50 states NMLS # 109616

 

The National Association of REALTORS® reports that Existing Home Sales declined 2.5% in November from October to an annual rate of 6,690,000 units versus the 6,800,000 expected. Sales were up a whopping 25.8% from a year ago (November 2019, 5,320,000). The median home sales price for all housing types rose 14.6% to $310,800 and was the 105 straight month of annual gains. Housing inventories fell to an anemic 2.5 months of unsold supply, down 22% from last year. Lawrence Yun, NAR's chief economist said, "The latest stimulus package and with the vaccine distribution underway, and a very strong demand for homeownership still prevalent, robust growth is forthcoming for 2021."

Due to the ongoing problems caused by COVID-19, many Americans are unable to come with the monthly rent or mortgage payment. On the mortgage front, the Federal Housing Administration announced it is extending the foreclosure and eviction moratorium for single-family FHA-insured mortgages for an additional two months, through February 28, 2021. The FHA is also extending through February 28, 2021, the deadline for single-family borrowers with FHA-insured mortgages to request an initial COVID-19 forbearance from their mortgage servicer to defer or reduce their mortgage payments for up to six months, which can be extended for an additional six months.

The $900B stimulus package passed through Congress and is on its way for President Trump to sign. This bill is more relief for many rather than a stimulus. The bill includes the direct payments of $600 for individuals making below $75,000 and couples making below $150,000. There is a $300 a week enhanced unemployment benefit, Paycheck Protection Program money and funds for the airlines. There is need for some type of funds for restaurants and the like which have been decimated during the pandemic.

 

Sales of existing homes slip. Forbearance program extended. Stimulus finally passed.

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