Real Estate Market Update - 21 September 2023
From the Desk of Kevin Burrell, President of Buller River and Estero Development Partners
I hope this letter finds you in good health and spirits. Today, I wanted to share some compelling insights regarding the current conditions of the real estate market, based on the recent article by Leah Draffen at Zonda for BUILDER.
In August, a significant surge in new-home mortgage applications was noted. As per the Mortgage Bankers Association (MBA) Builder Application Survey (BAS), these applications experienced a robust 20.6% year-over-year increase. Furthermore, on a month-over-month basis, we observed a 4% rise.
Joel Kan, the vice president and deputy chief economist of MBA, highlighted the growing demand for newly constructed homes in August. This uptrend is attributed to the reduced inventory of existing homes for sale. Interestingly, a majority of homeowners are inclined to retain their homes, primarily due to the lower mortgage rates they currently enjoy. Despite the 30-year fixed rate averaging over 7% in August, the appetite for new-home purchase loans has not waned but rather grown from the preceding year.
Drawing from the BAS data, MBA provided an estimated seasonally adjusted annual rate for new single-family home sales. This figure stands at 702,000 units for August, marking a 3.7% growth from July’s pace of 677,000 units. On a non-seasonal adjustment, it’s estimated that new-home sales for August touched 59,000, which is a 5.4% rise from the previous month.
Delving into the specifics of loan applications for August:
– Conventional loans made up 65.8%.
– FHA loans stood at 23.8%.
– RHS/USDA loans at 0.2%.
– VA loans rounded off at 10.2%.
Moreover, the average loan size for new homes in August experienced a slight bump, moving from $397,148 in July to $398,092.
For real estate investors, the present time is ripe for action. Home prices are on a consistent upward trajectory. At Buller River Developments and Estero Developments, we are poised to cater to your investment requirements. We have an array of homes readily available in the Charlotte NC area and SWFL, ensuring you benefit from this rising tide.
It’s undeniable that these trends shed light on the evolving dynamics of the real estate market. We remain committed to keeping you updated on market trends and opportunities, ensuring you make informed decisions.
President, Buller River and Estero Development Partners
Credit: Leah Draffen at Zonda for BUILDER