June 3, 2021 | Market Update

Market News 6-4-2021

Today’s Market News:

Multigenerational Home Sales Rise

According to a survey from the National Association of Realtors, sales of primary homes to multigenerational families grew from 12 % to 15 % in just the first three months of the pandemic. Taking care of aging parents was the primary motivator, with adult children moving back home and cost savings also factoring in.1

Investors Buying in Small Towns

Big-money real estate investors are increasingly buying up property in small-town America with cash-only offers, frustrating many would-be home buyers. Lower prices and lower taxes attract the investors, bringing big-city-style bidding wars and double-digit price increases to less populated areas.3

Fed Policy Clues Drive Up Rates

The Federal Reserve indicated that it might adjust its monetary policy as the economy meets its growth and employment goals (especially if inflation continues to rise). In response, Treasury bond yields rose, and mortgage rates climbed above 3%. However, the unpredictable path of economic recovery from the pandemic may translate to policy changes and volatile rates in the near future.4

High Costs Weigh Down New Home Sales

Sky-high prices drove new home sales down by almost 6% last month. High demand is only part of the price spike; another major factor is the unprecedented cost of building materials. Some builders are even reluctant to sign contracts for new homes because material costs will rise during construction and eat into their profits.5

Sources: 1msn.com 3magazine.realtor, 4msn.com, 5msn.com