Home Values Will Keep Rising Into 2021

 As with everything supply and demand also impacts the housing economy. In today’s economy, there is still uncertainty because of the pandemic. As we reach the end of 2020, home prices are still on the rise and are predicted to keep on the same path into the new year.

The current housing market is lacking still in inventory. The high demand for housing combined with the

lack of inventory is pushing home prices up. Bidding wars are becoming the norm and homebuyers are willing to pay the hefty price tag in today’s real estate market.

According to housing experts, the new year will continue to see home prices rising due to the continued lack of home inventory on the market. Showtime, which tracks the average number of buyer showings on residential properties, reported that buyer showings are up 61.9% this fall compared to the fall of 2019.

“Since the beginning of the COVID pandemic in March, nearly 400,000 fewer homes have been listed compared to last year, leaving a gaping hole in the U.S. housing inventory,” according to ShowingTime.

If you are in the market to purchase a home, reach out to a Realtor. A Realtor will be able to help you navigate the current face-paced housing market.

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High Demand in Housing Is Having a Direct Effect on the Market

 The pandemic has changed the way people view their homes. From the stay-at-home orders to the scare of spreading the virus, the home is everyone’s safe haven. Luckily today’s technology has enabled many Americans to work from home. More and more people are reassessing what they want in a home such as a home office, flex space and outdoor living space.

The housing market is booming in fact, home sales are higher than they were before the pandemic. The

existing and new home sales are the highest level we have seen in over a decade. With the increase in home sales, comes an increase in the demand for building materials and labor.

Lumber has been in very high demand during recent months. Not only are builders building new homes but many homeowners are remodeling their current homes. Home offices and remote work locations have also spiked the demand for this hot commodity. The November 2020 Random Length Lumber contract shows a low set during the height of COVID in April at 277 but then in August lumber was set at 820.

The copper market has also been greatly affected by the booming housing market. Looking at the September 2020 copper futures contract, we witness a low set on March 19 at 1.99, followed by a big move up to 3.08 by September 15. Copper is also valuable to the technology industry where it is used for building servers, semiconductors and switches.

Currently, sales of single-family homes are up 24% from the spring, existing condominiums and co-ops are up 32%. Lumber and copper numbers are a great way to measure and predict the direction the housing industry will go, knowing which markets are directly affected by the growing demand for single-family units can be important for every trader and investor.

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Strong October Housing Market

 Realtor.com’s Monthly Housing Trends Report said this October saw close to record levels in sales in the U.S. housing market. In fact, this October houses sold faster than September for the first time since 2011.

“In the fall, we normally see homes sell more slowly and prices pull back from peak levels. But this October, we saw a drop in the time it takes to sell a home even while home prices remain at their summer peak,” said Danielle Hale, chief economist for realtor.com.

According to Realtor.com in October homes sold in 53 days which was 13 days faster than October of last year. For home prices, the median listing price rose 12.2% year-over-year to $350,000.

The numbers for the newly listed homes by U.S. metropolitan area were very different. San Jose-Sunnyvale-Santa Clara, California had the highest new listing count year-over-year at 30.6% with a median listing price of $1,199,100.00 with 34 days on the market while Nashville-Davidson–Murfreesboro–Franklin, Tennessee had the lowest new listing count year-over-year at -27.5% with a median listing price of $400,000 with 32 days on the market. Within the country’s 50 largest metros, homes sold in a record 45 days.

As far as the nation’s regions, the Northeast had the highest gains at 11.4%, next the West had 10.1%, followed by the Midwest with 9% and the South came in last at 7.3%.

Here is a look at the number of newly listed homes by metropolitan area:

Metro	New Listing Count YoY	Median Listing Price YoY	Median Listing Price	Median Days on Market	Active Listing Count YoY
San Jose-Sunnyvale-Santa Clara, Calif.	30.6%	8.1%	$1,199,100	34	-18.5%
New York-Newark-Jersey City, N.Y.-N.J.-Pa.	28.2%	15.1%	$639,100	58	-6.1%
San Francisco-Oakland-Hayward, Calif.	25.9%	11.6%	$1,049,100	35	-4.2%
Los Angeles-Long Beach-Anaheim, Calif.	17.2%	16.9%	$995,100	49	-22.9%
Hartford-West Hartford-East Hartford, Conn.	15.9%	7.1%	$300,000	41	-31.3%
Boston-Cambridge-Newton, Mass.-N.H.	15.1%	13.9%	$669,100	33	-29.4%
Seattle-Tacoma-Bellevue, Wash.	12.5%	6.4%	$625,000	35	-31.6%
Sacramento–Roseville–Arden-Arcade, Calif.	11.3%	12.3%	$549,100	35	-48.4%
Minneapolis-St. Paul-Bloomington, Minn.-Wis.	9.9%	2.4%	$348,000	37	-30.1%
Washington-Arlington-Alexandria, DC-Va.- Md.-W. Va.	5.4%	4.6%	$502,100	36	-36.7%
Las Vegas-Henderson-Paradise, Nev.	0.4%	7.9%	$345,300	41	-7.8%
San Diego-Carlsbad, Calif.	-0.6%	11.2%	$795,100	24	-25.4%
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.	-1.2%	16.7%	$349,100	48	-41.8%
Denver-Aurora-Lakewood, Colo.	-2.0%	5.0%	$520,000	36	-44.2%
Birmingham-Hoover, Ala.	-2.4%	1.7%	$260,000	51	-36.1%
Portland-Vancouver-Hillsboro, Ore.-Wash.	-2.7%	9.1%	$510,100	49	-44.0%
Riverside-San Bernardino-Ontario, Calif.	-3.8%	14.6%	$470,100	41	-53.6%
Rochester, N.Y.	-3.9%	12.9%	$228,700	31	-43.3%
St. Louis, Mo.-Ill.	-4.4%	10.3%	$248,000	56	-38.4%
Virginia Beach-Norfolk-Newport News, Va.- N.C.	-4.9%	6.9%	$320,600	39	-46.7%
Baltimore-Columbia-Towson, Md.	-7.3%	4.6%	$340,000	43	-51.4%
Raleigh, N.C.	-7.3%	6.8%	$390,000	49	-45.4%
Milwaukee-Waukesha-West Allis, Wis.	-7.6%	3.8%	$300,000	42	-39.2%
Houston-The Woodlands-Sugar Land, Texas	-7.6%	7.8%	$334,100	52	-32.8%
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.	-7.9%	9.5%	$345,000	43	-32.6%
Buffalo-Cheektowaga-Niagara Falls, N.Y.	-8.2%	7.5%	$215,000	52	-46.7%
Tampa-St. Petersburg-Clearwater, Fla.	-8.2%	10.0%	$308,000	48	-43.0%
Miami-Fort Lauderdale-West Palm Beach, Fla.	-8.8%	2.5%	$410,100	93	-15.6%
Austin-Round Rock, Texas	-9.0%	15.9%	$413,200	46	-47.7%
Orlando-Kissimmee-Sanford, Fla.	-9.2%	1.6%	$325,000	59	-20.9%
Cleveland-Elyria, Ohio	-9.3%	3.2%	$200,000	47	-48.2%
Phoenix-Mesa-Scottsdale, Ariz.	-9.3%	7.7%	$415,600	36	-41.8%
Pittsburgh, Pa.	-9.4%	N/A	$245,100	57	-36.8%
Providence-Warwick, R.I.-Mass.	-10.3%	6.1%	$400,000	42	-52.5%
Kansas City, Mo.-Kan.	-11.1%	10.1%	$330,100	47	-48.7%
New Orleans-Metairie, La.	-12.8%	15.7%	$329,100	64	-39.1%
Cincinnati, Ohio-Ky.-Ind.	-13.7%	16.3%	$310,000	39	-44.9%
Oklahoma City, Okla.	-15.4%	6.6%	$270,000	48	-40.5%
San Antonio-New Braunfels, Texas	-16.0%	3.6%	$300,000	53	-40.8%
Dallas-Fort Worth-Arlington, Texas	-16.1%	4.1%	$356,000	47	-46.8%
Louisville/Jefferson County, Ky.-Ind.	-17.4%	2.2%	$258,100	35	-50.2%
Columbus, Ohio	-17.5%	9.0%	$305,100	35	-47.8%
Atlanta-Sandy Springs-Roswell, Ga.	-18.8%	10.6%	$355,100	46	-45.5%
Indianapolis-Carmel-Anderson, Ind.	-19.8%	5.7%	$275,000	43	-47.8%
Jacksonville, Fla.	-20.4%	2.6%	$318,100	55	-45.5%
Memphis, Tenn.-Miss.-Ark.	-21.7%	14.0%	$263,800	45	-49.3%
Detroit-Warren-Dearborn, Mich	-21.7%	12.4%	$269,100	38	-47.4%
Richmond, Va.	-21.8%	11.7%	$357,000	45	-48.2%
Charlotte-Concord-Gastonia, N.C.-S.C.	-22.9%	9.0%	$365,400	43	-48.7%
Nashville-Davidson–Murfreesboro–Franklin, Tenn.	-27.5%	8.1%	$400,000	32	-43.6%

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Two Important Building Trends For Today’s Buyer

 The COVID pandemic is still causing uncertainty in the world today. A person’s home has become their essential safe haven. The NAHB has learned from a two-part presentation lead by the Leading Suppliers Council (LSC) there are two building trends that have become essential to buyers in the housing market. Buyers are more concerned about purchasing a smart home and a healthy home.

Homeowners are spending more time than ever at home during the pandemic. People are living,

working and playing all at home. Utility costs are on the rise. Potential homebuyers are interested in smart technologies that can make their home more convenient, secure and energy-efficient. Smart devices are becoming the norm in newly built and renovated homes.

Two-thirds of consumers say they want a connected home. According to Stephen Embry, a partner with the law firm of Frost Brown Todd, in approximately 3 years around 43% of homeowners will have some sort of connected devices in their homes. She says that a home that does not have technology will not be worth as much as a home with technology.

Builders have also seen a trend in homeowners stressing the importance of a healthy home. What does this mean? Consumers want a home with good indoor air quality, plenty of sunlight and the use of non-toxic building materials.

Eco Pulse reports that 66% of Millennials are concerned about indoor air quality. According to the report, in one year six rooms can collect around 40 pounds of dust. There is a possibility that the dust collected could have close to 45 toxic chemicals in it. This is in the air homeowners breathe in their homes on a daily basis.

When building or remodeling a home to improve the home’s health there are many things to consider. Always use clean, renewable energy to help reduce greenhouse gas emissions. Use paints that do not contain VOC that will emit harmful chemicals into the home. Use sound insulation and lighting that adapt to circadian rhythms in the bedroom for improving sleep. Install sensors that monitor air quality. Use double-glazed windows to reduce noise and create better insulation, also make sure your windows provide maximum views to allow natural light in. Most importantly use energy-efficient systems that are easy to control and monitor.

Today more than ever, homeowners want to be able to depend on their homes for their safe place away from the stresses of the pandemic. These two trends are a great way to create a better, healthier environment for families to live, work and play in.

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