Here's this week's roundup of news and resources, just for you.
Quick takeaways:
Multigenerational homes grew in popularity during the pandemic.
Artificial intelligence can help to reduce appraisal bias.
Big investors are coming to small towns, outbidding potential buyers.
Mortgage rates over 3% as Fed hints at policy shift.
Building material costs contributing to a spike in home prices.
Read on for our coverage.
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
Reducing Appraisal Bias Using AI
Bias against neighborhoods or individuals can lead to significant undervaluations in appraisal. Computer models that use artificial intelligence to analyze images of the property can offer a fairer solution, as long as the system receives impartial data in the first place. 2
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
Have any questions? Reach out to us. We are your home loan experts and are up to date with all the market industry information. kevnik@kevnikmortgage.com
Sources: 1 msn.com; 2 housingwire.com; 3 magazine.realtor; 4 msn.com; 5 msn.com
