So far, it’s been quite a ride this year, and our nation has truly seen its fair share of hurdles. From COVID-19 to record unemployment and then the resulting recession, just to name a few, the second quarter of 2020 has had more than a few challenges. Amidst the many roadblocks, however, the U.S. homeownership rate rose again, signaling great strength in the recovery of the housing market and an indication that even in a time of crisis, Americans still feel confident about buying a home.
“The homeownership rate of 67.9 percent was 3.8 percentage points higher than the rate in the second quarter 2019 (64.1 percent) and 2.6 percentage points higher than the rate in the first quarter 2020 (65.3 percent).”
The increase is also represented by race and ethnicity of the householder:
There are many reasons why the homeownership rate in this country is rising, and one of the key factors is historically-low mortgage rates. Rates hovering at all-time lows are helping to drive affordability and enabling more potential homeowners to enter the market today. According to Ralph McLaughlin, Chief Economist for Haus:
“Mortgage rates are the icing on the cake for households that were thinking about buying...They found an unexpected opportunity during the worst economic downturn America has seen since the Great Depression.”
In addition, many potential homebuyers have been using their time this year to search for homes that offer more space than their current rental apartments. Many of these homebuyers are younger and, as noted by Odeta Kushi, Deputy Chief Economist at First American, are the buyers driving the homeownership rate in an upward direction:
“Big jump in the homeownership rate today, mostly driven by younger households. We saw a spike in the number of owners, and a decline in the number of renters. This is the highest rate of homeownership since 2008.”
This growth is outstanding news for the housing market and for those who have recently found their new homes. If homeownership is on your shortlist this year, maybe now is a great time to meet with a real estate professional to evaluate your current situation. Perhaps historically low mortgage rates can help you to become a homeowner too.
If you’re thinking of buying a home this year, let’s connect today to take your dream one step closer to reality.
Announcement from the census: As a result of the coronavirus pandemic (COVID-19), data collection operations for the CPS/HVS were affected during the second quarter of 2020. In-person interviews were suspended for the duration of the second quarter and replaced with telephone interview attempts when contact information was available. If the Field Representative was unable to get information on the sample unit, the unit was made a Type A no interview (no one home, refusal, etc.). See the FAQ for more information.
Why Is It so Important to Be Pre-Approved in the Homebuying Process?
You may have heard that pre-approval is a great first step in the homebuying process. But why is it so important? When looking for a home, the temptation to fall in love with a house that’s outside your budget is very real. So, before you start shopping around, it’s helpful to know your price range, what you’re comfortable within a monthly mortgage payment, and ultimately how much money you can borrow for your loan. Pre-approval from a lender is the only way to do this.
According to a recent survey from realtor.com, many buyers are making the mistake of skipping the pre-approval step in the homebuying process:
“Of over 2,000 active home shoppers who plan to purchase a home in the next 12 months, only 52% obtained a pre-approval letter before beginning their home search, which means nearly half of home buyers are missing this crucial piece of paperwork.”
This paperwork (the pre-approval letter) shows sellers you’re a qualified buyer, something that can really help you stand out from the crowd in the current ultra-competitive market.
How competitive is today’s market? Extremely – especially among buyers.
With limited inventory, there are many more buyers than sellers right now, and that’s fueling the competition. According to the National Association of Realtors (NAR), homes are receiving an average of 2.9 offers for sellers to negotiate, so bidding wars are heating up.
Pre-approval shows homeowners you’re a serious buyer. It helps you stand out from the crowd if you get into a multiple-offer scenario, and these days, it’s likely. When a seller knows you’re qualified to buy the home, you’re in a better position to potentially win the bidding war and land the home of your dreams.
“For ‘a buyer in a competitive market, it’s typically essential to have pre-approval done in order to submit an offer, so getting it done before you even look at homes is a smart move that will enable a buyer to move fast to put an offer in on the right home.’”
In addition, today’s housing market is also changing from moment to moment. Interest rates are low, prices are going up, and lending institutions are regularly updating their standards. You’re going to need guidance to navigate these waters, so it’s important to have a team of professionals (a loan officer and a real estate agent) making sure you take the right steps along the way and can show your qualifications as a buyer at the time you find a home to purchase.
In a competitive market with low inventory, a pre-approval letter is a game-changing piece of the homebuying process. If you’re ready to buy this year, let’s connect before you start searching for a home.
1819 SW 29th Terrace, Cape Coral 33914
We’re excited to present this newly listed, LUXURIOUS, custom pool home that is literally a WORK OF ART! This stunning, great room concept offers wood-plank look tile throughout, gorgeous wall mounted fireplace, 12 ft tray ceiling with accent lighting and 9 ft sliding glass doors. The chef in the family will appreciate the beautiful kitchen, appointed with slate/stainless appliances, easy care quartz counters and sleek, high gloss, European style cabinetry. The stunning master bathroom also offers a walk-in shower with large rain head, deep soaking tub, trendy dual vessel sinks and another lighted tray ceiling in the master bedroom. Enjoy the outdoor Florida life style by your NEWLY HEATED sparkling pool, outdoor summer kitchen with wine cooler, new black chain link fencing and BRAND NEW BOAT DOCK WITH LIFT. All assessments paid, move-in ready and quick closing possible! Nothing cookie-cutter here! This home is designed with an elegant, European flair and subtle sophistication that rivals homes that are double its price!
Offered at: $539,900
2447 Laurentina Lane, Cape Coral, FL 33909
Move in ready townhome in Bella Vida for maintenance free living with new hot water heater and BRAND NEW AIR CONDITIONER with UV purification system, just in time for the HOT summer months! Over 1700 sq. ft. with 3 bedrooms, 2 1/2 baths and large den. The upstairs master suite offers double sinks, large soaking tub and separate shower. Eat-in kitchen has stainless steel appliances, cherry cabinetry and view of lake from breakfast area. Screened lanai with storage closet. Attached garage has interior entrance through laundry room. Bella Vida's beautiful amenities include pool, fitness center, community room, tennis courts and more. Easy access to down town Fort Myers River District for shopping and dining and I-75 for commuting. Just perfect for full time or vacation lifestyles!!
Offered at: $194,900
2 oz. white rum
3/4 oz. fresh lime juice
1/2 Tbsp. white granulated sugar
8-10 mint leaves
Club soda, to top
Tools: muddler, barspoon
Garnish: mint sprig
In a highball glass, add the sugar and the lime
juice stirring to combine, then add the mint leaves
and muddle gently. Fill the glass with ice, then
add the rum and top with club soda, stirring gently
Sip ........... and enjoy!!
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