Monday, June 29, 2020 / by Garrett Mann
One of the biggest questions on everyone’s minds these days is: What’s going to happen to the housing market in the second half of the year? Based on recent data on the economy, unemployment, real estate, and more, many economists are revising their forecasts for the remainder of 2020 – and the outlook is extremely encouraging. Here’s a look at what some experts have to say about key areas that will power the industry and the economy forward this year.
Mortgage Purchase Originations: Joel Kan, Associate Vice President of Economic and Industry Forecasting, Mortgage Bankers Association
“The recovery in housing is happening faster than expected. We anticipated a drop off in Q3. But, we don’t think that’s the case anymore. We revised our Q3 numbers higher. Before, we predicted a 2 percent decline in purchase originations in 2020, now we think there will be 2 percent growth this year.”
Home Sales: Law ...
Thursday, June 25, 2020 / by Garrett Mann
Earlier this month, realtor.com announced the release of their initial Housing Recovery Index, a weekly guide showing how the pandemic has impacted the residential real estate market. The index leverages a weighted average of four key components of the housing industry, tracking each of the following:
Housing Demand – Growth in online search activity
Home Price – Growth in asking prices
Housing Supply – Growth of new listings
Pace of Sales – Difference in time-on-market
The index then compares the current status “to the last week of January 2020 market trend, as a baseline for pre-COVID market growth. The overall index is set to 100 in this baseline period. The higher a market's index value, the higher its recovery and vice versa.”
The graph below charts the index by showing how the real estate market started out strong in early 2020, and then dropped dramatically at the beginning of March when ...
Friday, June 19, 2020 / by Garrett Mann
Realtors often send our Appraisal Manager comparable sales (comps) to review for their upcoming appraisal appointments or for rebuttals when appraisals come in low.
The problem is that we often cannot use the comps b/c they are so far outside of standard appraisal guidelines.
This happened recently when an agent sent us comps that were all at least 30% larger than the subject property.
We also had an issue when an agent wanted to use comps on quiet cul-de-sacs to support the value of a subject property that was on a busy through-street.
B/c this happens so often, we like to send out these reminders at least once per year.
BASIC GUIDELINES FOR COMPARABLE SALES:
A. SIZEComps should ideally be within 20% of the size of the subject property (unless no other comps are available). For example, appraisers usually cannot use a 1,300 sf comp for a 1,000 sf subject property. Likewise, appraisers cannot use a 700 sf comp for a 1,000 sf property. Appraisers also cannot simply employ a &l ...