{"id":3675,"date":"2021-07-22T05:00:49","date_gmt":"2021-07-22T10:00:49","guid":{"rendered":"https:\/\/nwiloanguy.com\/blog\/todays-real-estate-market-explained-through-4-key-trends\/"},"modified":"2021-07-22T05:00:49","modified_gmt":"2021-07-22T10:00:49","slug":"todays-real-estate-market-explained-through-4-key-trends","status":"publish","type":"post","link":"https:\/\/nwiloanguy.com\/blog\/todays-real-estate-market-explained-through-4-key-trends\/","title":{"rendered":"Today\u2019s Real Estate Market Explained Through 4 Key Trends"},"content":{"rendered":"<p><img data-recalc-dims=\"1\" decoding=\"async\"  src=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/07\/21151040\/20210722-KCM-Share-549x300.jpg?w=358&#038;ssl=1\" class=\"webfeedsFeaturedVisual wp-post-image\" alt=\"Today\u2019s Real Estate Market Explained Through 4 Key Trends | Simplifying The Market\" loading=\"lazy\" style=\"margin-bottom: 5px;clear:both;max-width: 100%\" \/><\/p>\n<p>As we move into the second half of the year, one thing is clear: the current real estate market is one for the record books. The exact mix of conditions we have today creates opportunities for both buyers and sellers. Here\u2019s a look at four key components that are shaping this unprecedented market.<span id=\"more-44790\"><\/span><\/p>\n<h4><strong>A Shortage of Homes for Sale<\/strong><\/h4>\n<p>Earlier this year, the number of homes available for sale fell to an all-time low. In recent months, however, <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/07\/13\/why-this-isnt-your-typical-summer-housing-market\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener\">inventory levels<\/a> are starting to trend up. The latest <a href=\"https:\/\/www.realtor.com\/research\/june-2021-data\/\" target=\"_blank\" rel=\"nofollow noopener\"><em>Monthly Housing Market Trends Report<\/em><\/a> from <em>realtor.com<\/em> says:<\/p>\n<blockquote>\n<p><em>\u201cIn June, <strong>newly listed homes grew by 5.5% on a year-over-year basis<\/strong>, and by 10.9% on a month-over-month basis. Typically, fewer newly listed homes appear on the market in the month of June compared to May. <strong>This year, growth in new listings is continuing later into the summer season, a welcome sign for a tight housing market<\/strong>.\u201d <\/em><\/p>\n<\/blockquote>\n<p>This is <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/07\/16\/experts-agree-options-are-improving-for-buyers-infographic\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener\">good news for buyers<\/a> who crave more options. But even though we\u2019re experiencing <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/07\/14\/housing-supply-is-rising-what-does-that-mean-for-you\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener\">small gains<\/a> in the number of available homes for sale, inventory remains a challenge in most states. That\u2019s why it\u2019s still a sellers\u2019 market, giving homeowners immense leverage when they decide to make a move.<\/p>\n<h4><strong>Buyer Competition and Bidding Wars<\/strong><\/h4>\n<p>Today\u2019s ongoing low supply, coupled with high demand, creates a market characterized by high buyer competition and bidding wars. Buyers are going above and beyond to make sure <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/06\/21\/5-things-homebuyers-need-to-know-when-making-an-offer\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener\">their offer<\/a> stands out from the crowd by offering over the asking price, all cash, or waiving some contingencies. The number of offers on the average house for sale broke records this year \u2013 and that\u2019s great news for sellers.<\/p>\n<p>The latest <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\/research-reports\/realtors-confidence-index\" target=\"_blank\" rel=\"nofollow noopener\"><em>Confidence Index<\/em><\/a> from the <em>National Association of Realtors<\/em> (NAR) says the average home for sale receives five offers (<em>see graph below<\/em>):<a href=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/07\/21151038\/202010722-MEM-Eng-1.png?ssl=1\" target=\"_blank\" rel=\"nofollow noopener\"><img data-recalc-dims=\"1\" decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-44791\" src=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/07\/21151038\/202010722-MEM-Eng-1.png?resize=650%2C488&#038;ssl=1\" alt=\"Today\u2019s Real Estate Market Explained Through 4 Key Trends | Simplifying The Market\" width=\"650\" height=\"488\" \/><\/a>For buyers, the best way to put a compelling offer together is by working with a local real estate professional. That agent can act as your trusted advisor on what terms are best for you and what\u2019s most appealing to the seller.<\/p>\n<h4><strong>Home Price Appreciation <\/strong><\/h4>\n<p>The competition among buyers is driving prices up. Over the past year, we\u2019ve seen <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/07\/06\/a-look-at-home-price-appreciation-through-2025\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener\">home price appreciation<\/a> rise across the country. According to the most recent <a href=\"https:\/\/www.corelogic.com\/intelligence\/home-price-gains-more-than-tripled-over-the-past-year\/\" target=\"_blank\" rel=\"nofollow noopener\"><em>Home Price Index<\/em><\/a> (HPI) from <em>CoreLogic<\/em>, national home prices increased 15.4% year-over-year in May:<\/p>\n<blockquote>\n<p><em>\u201cThe May 2021 HPI gain was up from the May 2020 gain of 4.2% and was <strong>the highest year-over-year gain since November 2005<\/strong>. Low mortgage rates and low for-sale inventory drove the increase in home prices.\u201d<\/em><\/p>\n<\/blockquote>\n<p>Rising home values are a big part of why real estate remains one of the top sought-after investments for Americans. For <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/07\/12\/4-major-incentives-to-sell-this-summer\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener\">potential sellers<\/a>, it also means it\u2019s a great time to list your house to maximize the return on your investment.<\/p>\n<h4><strong>A Rise in Home Values and Equity<\/strong><\/h4>\n<p>The <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/06\/23\/homeowner-wealth-increases-through-growing-equity-this-year\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener\">equity<\/a> in a home doesn\u2019t just grow when a homeowner pays their mortgage \u2013 it also grows as the home\u2019s value appreciates. Thanks to the jump in price appreciation, homeowners across the country are seeing record-breaking gains in home equity. <a href=\"https:\/\/www.corelogic.com\/press-releases\/nationwide-homeowner-equity-gains-hit-1-9-trillion-in-q1-2021-corelogic-reports\/\" target=\"_blank\" rel=\"nofollow noopener\"><em>CoreLogic<\/em><\/a> recently reported:<\/p>\n<blockquote>\n<p><em>\u201c\u2026homeowners with mortgages (which account for roughly 62% of all properties) have seen their <strong>equity increase by 19.6% year over year<\/strong>, representing a collective equity gain of over $1.9 trillion, and an <strong>average gain of $33,400 per borrower<\/strong>, since the first quarter of 2020.\u201d<\/em><\/p>\n<\/blockquote>\n<p>That\u2019s a major perk for households to leverage. Homeowners can use that equity to accomplish major life goals or move into their <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/06\/11\/have-your-day-in-the-sun-by-moving-up-this-summer-infographic\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener\">dream homes<\/a>.<\/p>\n<h3><strong>Bottom Line<\/strong><\/h3>\n<p>If you\u2019re thinking about buying or selling, there\u2019s no time like the present. Let\u2019s connect to talk about how you can take advantage of the conditions we\u2019re seeing today to meet your homeownership goals.<\/p>\n<p>Source: New feed<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As we move into the second half of the year, one thing is clear: the current real estate market is one for the record books. The exact mix of conditions we have today creates opportunities for both buyers and sellers. Here\u2019s a look at four key components that are shaping this unprecedented market. A Shortage [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3676,"comment_status":"false","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10157519356927224_105287467588662":"","twitter_15771620_15771620":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[54],"class_list":{"0":"post-3675","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-local-info","8":"tag-100-financing","9":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Today\u2019s Real Estate Market Explained Through 4 Key Trends&#8212;NWI Loan Guy Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nwiloanguy.com\/blog\/todays-real-estate-market-explained-through-4-key-trends\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Today\u2019s Real Estate Market Explained Through 4 Key Trends&#8212;NWI Loan Guy Blog\" \/>\n<meta property=\"og:description\" content=\"As we move into the second half of the year, one thing is clear: the current real estate market is one for the record books. 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