Spring and summer are the busiest seasons for the housing market. Home buyer demand ramps up in March and doesn't typically start falling until after Labor Day. But this year is far from typical. And with buyer demand running well above last year's pace, it's natural to wonder what the fall housing market will look like. Will it be as competitive as the summer market or will it cool off like it usually does? Well, according to a new report from the National Association of Realtors' consumer website, it may be more normal than you'd think. That's because their most recent Housing Market Recovery Index – which tracks the market's rebound since the coronavirus' onset – found a slight dip in home buyer demand at the beginning of September. At the same time, the index found the inventory of homes for sale improved. The data is a hopeful sign for buyers that things may be trending in a more normal direction. If buyer demand continues to cool, it could mean a slower fall market with less competition and more homes to choose from. However, though encouraging, it's too soon to say whether or not the numbers are anything more than a small bump in the long-term trend.

When the coronavirus took hold in March it required a lot of adjustments. Everything from how we shop for groceries to how we socialize underwent an instant change. The way we work was among the biggest changes. Many Americans, who once commuted to-and-from the office every day, transitioned to working from home full-time. Now, six months later, it seems likely that remote work is here to stay, at least for some. But what might that mean for the housing market? Well, according to one new analysis, it could mean an opportunity for millions of renters to become homeowners. That's because, in many markets, renters can't afford to buy. In fact, priced-out renters make up 4.5 percent of all renting households. But, if those renters could live further from their workplace, they'd have an opportunity to buy a home in a more affordable area outside the city. The analysis found that this could apply to as many as 2 million current renters. However, since work isn't the only factor deciding where we live, only time will tell how many Americans will actually make the move.

Fannie Mae's Home Purchase Sentiment Index is a monthly measure of how Americans view the housing market and their personal financial situation. The survey asks respondents for their feelings about whether it's a good time to buy or sell a home, home prices, mortgage rates, job security, income, etc. In August, the index found Americans' optimism rebounded after a drop in July. Doug Duncan, Fannie Mae's senior vice president and chief economist, said the recovery was driven, in part, by record low mortgage rates. “The HPSI rose modestly in August, recovering the ground it lost in July,” Duncan said. “The HPSI's recovery was driven by near-record low mortgage rates that helped restore much of consumers' positivity on whether it is a good time to buy a home, while also improving the good-time-to-sell sentiment.” According to the survey, the number of participant who said they felt now was a good time to buy a home rose from 53 percent to 59 percent in August, while the net share of those who said it's a good time to sell increased 7 percent. The number of respondents who said their income was significantly higher than one year ago also rose, climbing 3 percent month-over-month.

If you know nothing else about how financing works, you know a lower mortgage rate is better than a higher one. You don't need to be an expert to have figured that out. But calculating exactly how a good rate affects how much house you can afford is a little more complicated. After all, there a lot of moving parts. One recent analysis might help. The report looked at how much purchasing power home buyers have gained over the past year – since mortgage rates have dropped by almost a full point during that time. The results help explain why buyer demand is so high right now. They also help illustrate just how much more house you can afford with rates near record lows. So how much is it? Well, according to the numbers, a home buyer with a monthly budget of $2,500 can afford a home $33,250 more expensive than what they could buy last year at the same time. That's a nearly 7 percent increase year-over-year. Put another way, that buyer, in August 2019, could afford a $483,250 house. Now, they could comfortably buy a $516,500 house. That's a significant upgrade and good news for hopeful home buyers looking to make a move as the summer winds down.

Ideally, the number of homes for sale would be equal to the number of interested home buyers. After all, an equally balanced housing market would mean no competition, no bidding wars, and no threat of spiking home prices. Unfortunately, though, that's not how it works. And so, there are times when there are few buyers and more than enough homes and other times when there aren't enough homes to satisfy buyer demand. In today's market, inventory is low. The number of available homes for sale was already lower than normal to start the year and the pandemic only made things worse. How much worse? Well, according to new data from the National Association of Realtors' consumer website, inventory was down 36 percent in August year-over-year. And while there are some areas – like Las Vegas, San Francisco, and Orlando – where active listings are down as little as 11 percent, there are others that have seen inventory drop as much as 55.9 percent. In short, it's a seller's market and will likely continue to be for the foreseeable future. That means, hopeful home buyers need to be prepared to act fast when they find a home that fits their needs.

During the second quarter, the economy suffered the worst contraction since World War II. But the strength of the subsequent rebound has Fannie Mae's Economic and Strategic Research Group expecting further improvement. In fact, according to their latest forecast, the group believes that – barring a worsening of the coronavirus outbreak – the recovery will continue into the third quarter. And Doug Duncan, Fannie Mae's chief economist, says the housing market will lead the way. “We believe housing will continue to be a sector with relative strength amid the larger downturn, as long-running supply constraints exacerbate demographic and interest rate demand-side factors that are supporting home price growth,” Duncan said. “The recently observed increase in purchase demand is largely due to pent-up demand as buyers are acting now after delaying purchases in the spring.” Additionally the ESR Group says that any regional coronavirus flare-ups are unlikely to lead to a further economic contraction and, instead, will result only in a temporary pause in the growth rate. Because of this, they've revised upward their forecast for home sales and mortgage originations this year.

In July, sales of newly built, single-family homes soared to their highest level since 2006, according to new estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development. Sales increased 13.9 percent from the month before and are now 36.3 percent higher than at the same time last year. The improvement is yet another sign that buyer demand has rebounded after initially tumbling following the coronavirus' onset this spring. Skyrocketing new-home sales – combined with the similarly strong July existing-home sales report – make it clear that Americans have returned to the market and are eager to buy, while they can still take advantage of record-low mortgage rates. But though the long streak of low mortgage rates has helped keep affordability levels in check, buyers still face rising prices. In fact, the median sales price of new homes sold in July was $330,600, which is 7.2 percent higher than it was one year ago. The average sales price was $391,300.

The coronavirus pandemic has caused Americans to spend more time in their homes than they did in the past. Remote work and stay-at-home orders have kept people at home and it's changed how they feel about their living space. Mostly, it's caused them to dream of a bigger house. The proof is in the numbers. For example, according to one recent analysis, the typical home sold over the past 30 days has been 3.7 percent bigger than the typical home sold during the same period one year ago. And while 3.7 percent may not seem like that much, the average year-over-year growth rate between 2015 and 2019 was just 0.4 percent. Additionally, sales of larger homes were up 21 percent year-over-year in July, nearly 10 times the growth rate for smaller homes. In short, home buyers are focused on finding more space and it's starting to show up in the data. But while sales of bigger houses have spiked, their prices haven't. Small and medium-sized homes are still seeing faster price increases compared to larger homes.

When the coronavirus pandemic began in mid-March, there were understandable concerns about how it would affect the housing market. But fortunately, though activity did fall, it rebounded just as quickly. Home buyers who delayed their plans adapted to new safety regulations and resumed their home search. But while buyers were quick to get back into the market, home sellers didn't rebound quite as fast. The number of newly listed homes for sale lagged and it resulted in more competition among buyers, upward pressure on prices, and an increase in bidding wars. But according to the most recent Weekly Recovery Report from the National Association of Realtors' consumer website, things may finally be turning around. In fact, the report, which covers numbers through the week ending August 8, found new listings grew passed their pre-pandemic baseline for the first time since the coronavirus' onset. Javier Vivas, director of economic research for the site, says seller confidence has reached an important milestone. “Seller confidence has been improving gradually after reaching its bottom in mid-April, and now it appears to have reached an important recovery milestone,” Vivas said. “After five long months, sellers are back in the housing market.” 

Accessory dwelling units (ADUs) are defined as secondary, self-contained housing units located on the same lot as a primary single-family home. In other words, guest houses, in-law apartments, garage apartments, and carriage houses. In most cases, these dwellings include a bathroom, kitchenette, living area, and a separate entrance. They're also increasingly popular among Americans living in regions where population growth and cost-of-living is on the rise. In fact, according to a newly released study from Freddie Mac, properties with ADUs represented 4.2 percent of homes sold last year, which is up from 1.1 percent in 2000. And, if that doesn't seem like a lot of growth, consider the fact that the number of property listings with ADUs grew by an average of 8.6 percent year-over-year between 2009 and 2018. Their quickly rising popularity makes sense, though. Affordable housing in major urban areas is more difficult to find these days and ADUs provide an option for all age groups, as well as both renters and buyers. That's why these units have been multiplying over the past few years and especially in fast growing metros like Los Angeles, Portland, Dallas, Seattle, and Miami.