Home Inventories Remain Low Due to Heavy Demand

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

 

Sales of new-single family houses fell in November from October due in part to affordability issues. The Census Bureau reports that New Home Sales fell 11% in November from October to an annual rate of 841,000 units. That is below the 990,000 expected. Sales were up nearly 21% from November 2019 (696,000). The median sales price of new houses sold in November was $335,300 while the average sales price was $319,100. Inventories remain low at a 4.1 month supply.

Mortgage rates remained at record lows in the latest week and continue to buoy the housing sector. The MBA reports that the 30-year fixed-rate mortgage was steady at 2.86% from 2.85% with 0.33 in points in the week ending December 18, 2020. The MBA went on to report that the Market Composite Index rose 0.8%, the Purchase Index declined by 4.8% while the Refinance Index gained 3.8%. The MBA's Joel Kan said, "There are still signs of relative strength in the housing market as 2020 ends. However, housing affordability will be worth monitoring next year."

Comments (3)

Richard Weeks
Dallas, TX
REALTOR®, Broker

Great information, thanks for sharing.  I hope you have a great day.

Dec 24, 2020 02:15 AM
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Hopefully we'll see more inventory in the spring but I think affordability will continue to be a problem.

Dec 24, 2020 12:38 PM