There's a reason living near a major metropolis has traditionally been more expensive than living further away. Put simply, it's where the jobs are. And, if you work in the city, you likely aren't going to want to live so far away that you have a two-hour commute there and back. Naturally, though, the pandemic has changed things. With more Americans able to work remotely, home buyers have a different set of priorities than they did even a few years ago. For example, a recent analysis of commute times and home prices found that homes within 10 minutes of city centers are seeing slower price growth than those further out. In 2017, homes within a 10-minute commute had the fastest-growing home values in half of the 18 most expensive metros. Now, only three of the 18 are still experiencing the fastest growth. In fact, these days, more than half of them are experiencing slower growth or even seeing prices beginning to fall. That's pretty strong evidence that remote work has changed our priorities and moved affordability higher than living near the city on many buyers' wish lists.

Sales of previously owned homes increased 1.4 percent in June, according to new numbers from the National Association of Realtors. The month-over-month improvement pushed home sales 22.9 percent higher than they were last year at the same time. Lawrence Yun, NAR's chief economist, says the number of available listings has improved and it's helping home sales. “Supply has modestly improved in recent months due to more housing starts and existing homeowners listing their homes, all of which has resulted in an uptick in sales,” Yun said. “Home sales continue to run at a pace above the rate seen before the pandemic.” But while the number of listings has increased, inventory is still tighter than historically normal. In fact, at the current sales pace, there was a 2.6-month supply of homes available for sale in June. That's improved from May but still well below the 6-month supply considered healthy for the market. That means buyers still need to be prepared to act fast, since nine of 10 homes sold in June were on the market for less than a month. 

Many surveys have shown an all-cash offer is the surest way to win a bidding war. The problem, of course, is most buyers – and especially first-time and entry-level buyers – don't have the savings necessary to make an all-cash offer. Despite this, they're becoming more common in today's market. In fact, according to one recent analysis, all-cash purchases have accounted for 30 percent of homes sold so far this year. That's the highest number since 2014. So what's behind the trend? Well, a few things. Recent stock market gains are one. Another factor is the number of people leaving cities and moving to more affordable areas in the suburbs and exurbs. These buyers can sell a highly priced home and then use their equity to purchase a more affordable home in another area. Real-estate investors are also known for all-cash offers and they're increasingly returning to the market these days. Ultimately, wherever they come from, cash offers in a competitive market can present a challenge for buyers. The good news is there are indications that the number of available listings are increasing, which should help reduce competition and the frequency of bidding wars.

Among home-improvement projects, painting is a lot easier than having to remodel a kitchen or redo an entire bathroom. That's why it's smart for home buyers to look beyond the color of a home's walls when deciding whether or not the house is a good fit for their needs. After all, if you hate the color of the living room but love everything else about the house, it's a fairly simple problem to solve. But while that's true, it doesn't mean the color of a home's walls don't influence buyers' perceptions of the homes they tour. In fact, according to one recent survey, the right paint color can not only help generate interest but also more money. For example, the survey found that light blue bathrooms ranked high with respondents and could help the house sell for more than $4,500 more than expected. Conversely, mint green kitchens were unpopular and meant a sales price of almost $2,000 less. Ultimately, though boldly colored rooms can sometimes help generate buyer interest, neutral colors - like beiges, whites, and grays – scored highest, especially when used in a home's most trafficked spaces.

Because the pandemic interrupted last year's spring sales season, this year's was hotly anticipated. It didn't disappoint. Buyers returned to the market in droves. But while home buyers were out in force, home sellers didn't return quite as quickly. The result was a market flooded with shoppers but low on homes for sale. Naturally, that led to spiking prices and intense competition for the homes that were available. It got so bad that, according to one analysis, 74 percent of the homes sold in April faced a bidding war. Fortunately, though, there are signs that the market has cooled down since then. In fact, the same analysis found that, in June, the share of homes with multiple offers fell to 65 percent. That, of course, is still quite high. In fact, it's about 10 percent higher than it was last year at the same time. However, any improvement is welcome, especially for prospective buyers frustrated by super fast sales and surging prices

Walkable neighborhoods with easy access to public transit have traditionally been attractive to home buyers. After all, who doesn't like the convenience of having the things you need close by? But while convenience is appealing, it's not the only thing home buyers weigh when deciding where to look for a new house. And after the pandemic upended our daily routines and changed where and how we work, access to transit began to fall from the top of buyers' wish lists. In short, the pandemic changed home buyers' priorities too. That helps explain a new analysis showing car-dependent neighborhoods experiencing sharper home-price increases than areas close to transit. In fact, the analysis found the median-sales price in car-dependent areas has increased 32.8 percent since January 2020. In transit-accessible neighborhoods prices have risen 15.6 percent. The disparity is a reflection of how many buyers have chosen privacy, space, and affordability over convenience and transportation since the beginning of the pandemic. Whether or not this trend continues will depend, in part, on how many remote workers are required to return to offices as the economy's reopening progresses.

With fewer homes available for sale and prices on the rise, it's a great time to sell a house. And, according to Fannie Mae's most recent Home Purchase Sentiment Index, more Americans are noticing. In fact, their survey – which tracks Americans' perceptions of the housing market, buying and selling a home, prices, mortgage rates, and their personal financial situation – found that 77 percent of respondents said they feel like it's a good time to sell. That's up 10 percent from last month. Doug Duncan, Fannie Mae's senior vice president and chief economist, says optimism about buying conditions isn't as high, but demand should remain strong. “Despite the pessimism in home buying conditions, we expect demand for housing to persist at an elevated level through the rest of the year,” Duncan said. “Mortgage rates remain not too far from their historical lows, and consumers are expressing even greater confidence about their household income and job situation compared to this time last year, when the pandemic had shut down wide swaths of the economy.” 

In this market, homes for sale don't last very long. Good homes are listed and purchased in a matter of days. In fact, according to new numbers from the National Association of Realtors' consumer website, properties in June sold 35 days faster than last year and 21 days faster than the average June between 2017 and 2019. Nationally, the typical home was on the market just 37 days – and, in cities like Rochester, Denver, and Nashville, homes sold in two weeks or less. Fortunately, George Ratiu, the website's senior economist, says relief may be on the way. “The improvement we saw in new listings growth from May to June shows sellers are entering the market historically later in the season, which could mean we'll see home buying continue into the fall as buyers jump at new opportunities,” Ratiu said. In other words, new listings have been trending higher and it may mean home sellers are returning to the market. If the trend holds – and more homes become available for sale – the market's current pace will begin to slow and buyers will have more choices and, hopefully, a little more time.

Homeownership is a major financial commitment. Not only does it mean a monthly mortgage payment but it also comes with other expenses like property tax and homeowners insurance that add to the cost. So with home-price increases in the news, it's natural to wonder whether buying a home is still affordable. ATTOM Data Solutions' second-quarter 2021 U.S. Home Affordability Report has some answers. The report takes homeownership costs on a median-priced home and wage data from the Bureau of Labor Statistics and compares them to historical averages. The results found 61 percent of counties were less affordable now than they've been in the past. However, though more expensive in those counties, homeownership isn't beyond the average worker's financial means. Todd Teta, ATTOM's chief product officer, says it's still within reach for the average American. “Average workers across the country can still manage the major expenses of owning a home, based on lender standards,” Teta said. “But things have gone in the wrong direction this quarter in a majority of markets as the national housing market boom roars onward.” 

For generations, young Americans have included homeownership among their goals for the future. Its appeal has endured over the decades and through numerous bubbles, crashes, and recessions. Now, according to a new survey from the National Association of Realtors' consumer website, there's another generation of young Americans making plans to buy in the near future. The recently released survey of 18-to-25 year olds found that nearly three-quarters of respondents said they'd prefer to buy rather than rent over the long term. Among them, 43 percent said they think they'll be ready to buy in the next five years – with an almost identical amount saying they think it'll take them somewhere between five and 10 years. Either way, that means millions of prospective home buyers entering the market over the next decade. And, if survey results are any indication, most of them with be looking to buy in the suburbs – since nearly half of Gen-Z survey participants said they saw themselves buying there rather than in an urban or rural area.