May 20, 2021 | Market Update

Market News 5-21-2021

Mortgage Market Update

Prices Rose Everywhere

99% of metro areas saw home prices increase in the first quarter of the year, according to the National Association of Realtors. Though some cities saw year-over-year jumps as high as 35%, even smaller places saw at least modest rises. Experts credit record-low supply and strong demand for the broad increases.1

Appraised Value vs Sales Price

Home prices are surging as high as they’ve ever been, which can mean a significant gap between the sale price and the appraised value. Rushed appraisers can’t always keep up with new data that conflicts with even recent history. One option is a Reconsideration of Value request, which lets an unsatisfied buyer submit newer comparables for the appraiser to consider.2

High Costs for Building Materials Impacting Affordability

According to home builders, the cost of lumber has increased more than 300% since last April with other materials like steel and concrete rising fast as well. The NAHB has reached out to lawmakers for solutions resulting in bipartisan support.3

Buyers Expect Prices To Rise Further

71% of Americans expect home prices to grow even more this year, according to a recent survey by Gallup. That figure stood at only 40% a year ago, and since then, housing prices have risen to record levels. Despite the pricey and hyper-competitive market, 53% still consider this a good time to buy.4