A little over a week into summer, the weather is definitely heating up around here! But the Home Affordability Heat Map in our first link actually shows a little welcome cooling. We also look into the stats on sales of new and existing homes for May, plus a hopeful look at how the younger generations are faring, and a net-zero ready pre-fab tiny house.
Improvements in Affordability
Home prices are increasing in the second quarter around the U.S., in spite of all the other economic woes. But affordability is increasing too, thanks to rising wages and crazy-low interest rates. ATTOM data reports that two-thirds of included markets require more than 30 percent of average wages to own a home. However, 49 percent of markets are reporting affordability that’s better than their historic averages.
New Home Sales Going Up Faster than New Homes
The market has been picking up for new construction. In fact, new houses are selling so fast that the biggest increase in sales for May was for homes that haven’t been started yet. For the short term, at least, the biggest problem for contractors may be how to meet the increasing demand. And to complicate matters further, labor, land and materials are all in short supply or rising in cost.
Existing Home Sales Down But Promising
Sales of existing homes, on the other hand, plummeted 9.7 percent for May. But since that number represents completed sales, those homes were actually sold at the height of the shutdown in March and April. Realtors are optimistic that they’ve already seen the low point and expect improvement from here on out.
The Silver Lining
A survey of millennials and Gen Z shows that while feeling stressed is an everyday reality for many, the pandemic has also given rise to optimism and a desire to do good in the world.
This Pre-Fab Tiny Home is Net-Zero Ready
If you’re in the market for a tiny house in California, Arizona, or Nevada (surely there are a few of you out there!) you should definitely look into these lightHouse modular ADUs (accessory dwelling units). Actually, you should check out the link in any case, because they’re just really neat. Built with sustainability and livability in mind and embodying the “luxury of less,” these just might be the home of the future.
Until Next Week
If you’re one of the many buyers jumping back into the real estate market, is new construction a priority for you? Would you consider a modular or prefab home? What about the impact of the pandemic on your frame of mind? We’d love to hear from you.