Buying a home is a process. There are several steps between the day you're approved to borrow and the day you get keys to your new home. Among them, having an offer accepted and signing the contract to buy is a big one. Barring something unforeseen, it means you're a few weeks away from closing on your house and getting ready to move. That's why, after the contract is signed, the home's sale is considered pending. It's also why the National Association of Realtors tracks pending sales each month, because they're a good indicator of future home sales. According to their most recent report, contract signings fell in January, dropping 5.7 percent from the month before. Lawrence Yun, NAR's chief economist, says it's likely because the inventory of homes for sale remains low. “With inventory at an all-time low, buyers are still having a difficult time finding a home,” Yun said. Fortunately, though, listings usually pick up in spring, when the traditional buying season begins. As more homes become available for sale, there will be more options to choose from, which should help slow price increases and competition among buyers . (source)

Affordability is a top concern for today's home buyers. Mortgage rates have risen recently and home prices continue to climb. But while it may seem like buyers haven't gotten any good news lately, the most recent new residential construction report from the U.S. Census Bureau and the Department of Housing and Urban Development contains some encouraging signs. The report found that, in January, permits to build new, single-family homes rose 6.8 percent from the month before. And, because spiking home prices are primarily being driven by a historically low number of homes for sale, any news of an increase in new home construction is good news for buyers. After all, as more new homes are built, the balance of supply and demand will become more favorable, which will help slow price increases, competition, and bidding wars. In other words, increasing building permits are a positive sign that the inventory shortage may soon begin to improve, helping affordability and buyers' chances at finding a good home that fits both their needs and budget.

By now, just about everyone knows home prices rose in 2021. Even if you weren't shopping for a home last year, you probably came across a headline or news story covering the accelerated pace of price increases. What you may not know, though, is just how high they climbed. New numbers from the S&P Case-Shiller Home Price Indices give us a better idea. According to their most recent release, prices nationwide posted an 18.8 percent increase last year. Craig J. Lazzara, managing director at S&P, says it was the highest in decades. “For the year, the National Composite Index recorded a gain of 18.8 percent,” Lazzara said. “This is the highest calendar year increase in 34 years of data, and substantially ahead of 2020's 10.4 percent gain.” Fortunately, though 2021 was a record-breaking year for home values, this year's outlook calls for a much slower rate of increase, as most experts believe the market will begin to balance and price increases will slow considerably. (source)

When you choose a home to buy, you're also choosing a neighborhood. The area surrounding the house you buy will play a big part in how much you like living there. After all, you aren't going to be spending all of your time indoors. That's why it's important as a home buyer to take note of the area's amenities and how close you are to the things you'll want and need. How important? Well, one recent survey found that 80 percent of Americans said they love their home and, among them, 77 percent said it was because of the location, neighborhood, or neighbors. In fact, their neighborhood came in second only to the memories they've made in their house. So how can you make sure you choose a neighborhood you'll love? You can start by checking for amenities like parks, trails, shopping, restaurants, entertainment, and walkability. Also, consider how far away you'll be from work, family, and friends. Everybody wants a great kitchen and plenty of storage space, but a perfect interior may not be enough if it's far from the things you love. (source)

The winter housing market is typically the slowest of the year. Many prospective home buyers, anticipating the start of the spring sales season, put their plans on hold and wait for warmer weather. But while this winter saw the market slow down a bit, it's been anything but typical. With the number of homes for sale still much lower than normal, even winter home buyers have encountered a fast-paced market with plenty of competition from other buyers. In fact, one recent analysis covering the four weeks ending February 6 found that 55 percent of homes recently for sale had an accepted offer within the first two weeks on the market - that's up from 49 percent in January 2021 and 41 percent in 2020 – and the share of those homes that went under contract within one week climbed to 43 percent, up from 29 percent in 2020. In other words, homes for sale are still selling quickly and buyers need to be prepared to act fast when they find one they want. (source)

Determining how much house you can afford can be complicated. There are a lot of numbers involved. Home prices and mortgage rates are important, of course, but so is your downpayment, household budget, and income. In other words, it's an equation that's pretty specific to your financial situation, the house you're looking at, and which neighborhoods you're targeting. Ultimately, though, you're trying to figure out how much your monthly mortgage payment will be. And while it does depend a lot on your particular situation, having a ballpark figure can help you visualize what to expect. So what does the typical mortgage payment look like these days? Well, according to new numbers from the National Association of Realtors, the average monthly mortgage payment on an existing home rose to $1,240 in the fourth quarter of 2021. That's up $201 from the same time one year earlier. But while rising home prices have pushed mortgage payments higher, Lawrence Yun, NAR's chief economist, says there's good news on the horizon. “The good news is that home prices should begin to normalize later in 2022 as more homes come on the market,” Yun says. (source)

Traditionally speaking, marriage and homeownership go hand-in-hand. First, you get married, then you buy a home and start a family. It's all a part of settling down. But while that's the classic order of things – and the majority of today's home buyers are still married couples – this somewhat old-fashioned notion is starting to change. These days, there's an increasing number of single Americans buying homes and, according to one recent survey, even a rising number of buyers who have purchased a house with a partner, friend, or family member. In fact, 31 percent of Americans have bought a primary residence with someone they aren't married to – and an even larger percentage would consider it. Among respondents, 55 percent said they'd be open to it, and among 18-to-34-year-olds, 68 percent said so. Of course, among home buyers who weren't married, the most common buying partners were romantically involved couples, though older and younger relatives, siblings, roommates, and friends also made the list. (source)

Buying a house is a major financial transaction. For most of us, it'll be among the biggest we're ever involved in. But money isn't the only thing you're committing when you purchase a home, you're also committing your time. The average home buyer will spend the next five to 10 years living in the house they buy. Which is why it's important to know exactly what you're looking for when shopping for a home – especially, in a fast-paced market. You likely won't have days to debate the pros and cons of a particular property. You'll have to make a decision quickly, and that can lead to buyer's remorse. In fact, a recent survey of homeowners who bought in the past two years found 75 percent said they had at least one regret about the home they purchased. An almost identical number of respondents said they wish they'd done at least one thing differently when they were shopping for a home. But while compromise is inevitable as a home buyer, regrets aren't. Before you begin, make a list of must haves and deal breakers. Knowing where you're willing to compromise, and where you won't, will help you choose a house you're less likely to regret. (source)

Nearly 200,000 more Americans will turn 32 this year than did last year. That may seem like a random factoid but it actually has big implications for the housing market. That's because 32 is the age when many Americans buy their first home. It's also close to the median age of parents with newborns. And with a couple hundred thousand more Americans turning 32 this year – and even more next year – there will be a lot of home buyers looking to buy a home in a family-friendly neighborhood. That means increasing demand for affordable homes at a time when the inventory of homes for sale in those price ranges is lower than normal. The effects can already be seen. In fact, according to one recent analysis, home prices are rising about 3 percent faster in areas with a larger share of kids than they are in ZIP codes where there are fewer kids. So what does this mean for young Americans who are starting families and thinking about buying a home? Well, it means competition and prices will be rising in desirable, kid-friendly neighborhoods, so it's more important than ever to have some savings and your finances in order. (source)

The gap between what homeowners owe on their mortgages and what their homes are worth continues to widen, according to new numbers from ATTOM Data Solutions. Their most recent U.S. Home Equity & Underwater Report found that 41.9 percent of mortgaged residential properties were considered equity rich in the fourth quarter of 2021. Equity rich refers to when the combined amount of loan balances is no more than 50 percent of a property's estimated value. In short, it's good news for homeowners – and it's spreading. The percentage of equity-rich properties was up from 39.5 percent in the third quarter and 30.2 percent at the same time the year before. Todd Teta, ATTOM's chief product officer, says homeowners benefited from last year's home-price increases. “As home prices kept rising, so did the equity built up in residential properties, to the point where close to half of all mortgage payers around the country found themselves in equity-rich territory,” Teta said. “No doubt, there are market metrics that pose warnings about how long the boom can last and equity can keep improving … But for now, homeowners are sitting pretty as the wealth they have tucked away in their homes keeps growing.” (source)