In part one of this two-part blog series, we compared some home sale and other mortgage-related data from the end of the 2019 year to the same months from the previous year. This is a common practice in the mortgage world, which relies heavily on trends and forecasting, and is even more important as the COVID-19 outbreak has spread the globe and impacted markets everywhere – many are utilizing late 2019 data for a better sense of how the market will be once things return to “normal.”
When you work with the Deb Klein Team at Reliability in Lending for your home loan needs, this kind of close attention to trends and the latest data is just one piece of the dedicated mortgage services you’ll receive. In today’s part two, we’ll go over a few additional important areas from late 2019 housing data to be aware of moving forward.
One distinct area that saw a major drop at the end of 2019, both from previous months and from the same periods during 2018, was total housing inventory. At the end of the 2019 calendar year, total housing inventory was 1.40 million units – that’s nearly a 15% drop from the November 2019 number, and 8.5% lower than the number from the end of 2018, which was 1.53 million units.
As a result, unsold inventory dropped somewhat. Their current pace has them at a 3.0-month supply, down from 3.7 in November. This marks the seventh consecutive time unsold inventory totals have gone down on an annual basis, which is a poor sign for home sales in general.
One major area that’s considered by mortgage experts is the share of first-time buyers responsible for home sales within a given period of time. This helps us understand how robust the market is for new members, plus illuminates a few other factors.
For December 2019, first-time buyers made up 31% of all home sales. Comparably, individual investors or second-time buyers made up 17% of sales. This leaves just over 50% of all home sale types for other buyers, including experienced real-estate flippers.
Regional breakdowns are also important for mortgage professionals, and three of the four primary US regions saw monthly increases in home sales in December 2019 – while all four saw year-over-year increases. The numbers for each region:
For more on housing and market trends, or to learn about any of our mortgage rates or other home loan services, speak to the staff at Reliability in Lending today.
*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.