Welcome to Styldod’s fortnightly news digest, where we discuss the latest real estate news and trends. This series is dedicated to providing real estate professionals with a round-up of the latest happenings, developments, and forecasts for the industry. This fortnight, we touch upon the impact of the pandemic on homeownership, the increase in rent prices across the country, the rise of a net-zero carbon community, and much more.
Homeowners with mortgages in the US have seen a growth in equity by 19.6% in 2021, says CoreLogic’s Homeowner Equity Report. Despite the coronavirus pandemic creating havoc economically, home prices have surged last year, resulting in a cumulative equity gain of $1.9 trillion. This is good real estate news for homeowners who lag behind on mortgage payments as they can sell their homes with equity instead of losing them.
Rent prices are touching the roof and have doubled when compared to statistics from this time last year. According to the Single-Family Rent Index report from CoreLogic, countrywide rent prices have shot to 5.3% in April 2021 from 2.4% in April 2020. The reason for rates exceeding pre-pandemic levels is the lack of housing inventory across the country.
The pandemic has been a boon and a bane for homebuyers. Real estate news tells us exorbitant homes are suddenly at the fingertips of buyers due to historical drops in mortgage rates. In contrast, soaring home prices and lack of inventory have made it difficult for them to find homes that fit their needs. Markets like Albany, Baton Rouge, and Columbia have seen a rise in homeownership; however, it has dropped in San Diego, Salt Lake City, and Knoxville. “The pandemic drove increased home buying interest in the types of livable communities that offer homebuyers good value for their money and a decent number of homes to choose from,” says Danielle Hale, chief economist at Realtor.com.
With a shortfall in inventory, homes are selling quicker at high prices. According to a survey conducted by Homes.com, 8 out of 10 homes were sold at list price or above. 10% of sellers say they had no in-person showings and were able to sell their homes with virtual staging and virtual tours. With quicker sales and higher prices, sellers say they expect deals with rapid closures and no contingencies.
Source: Realtor Magazine
An innovative carbon-conscious housing model is springing up in Valencia, California. Over 21,000 homes are being built by real estate biggies like Toll Brothers, KB Home, Tri Pointe, and Lennar, creating the largest net-zero community in the nation. With a rise in environment-conscious millennial homebuyers, the builders are incorporating solar panels, clean-burning stoves, and electric vehicle chargers, among other features, to create an eco-friendly housing community.
With homes selling like hotcakes at higher prices, a rise in demand, rent prices soaring, and growth in home equity rates, this is a great time to be working in real estate. The springing up of carbon-conscious housing communities gives hope for a better future in business and the quality of life.
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Styldod is a design tech company that aims to simplify real estate marketing and help agents present homes in their most favorable light online by reimagining and automating the listing photography process. Having begun as a virtual staging company, today, Styldod has affordable and best-in-class products and services for every facet of real estate marketing and photography. Styldod’s suite of services includes virtual staging, image enhancements, floor plans, virtual renovation, 3D renders, 360-degree virtual tours, and Matterport virtual staging, to name a few. We're trusted by over 10,000 realtors from all over the US and from companies like ReMax, Coldwell Banker, Keller Williams.