Mortgage Market Update For Spring 2021
Key Takeaways And Trends
With the local housing marketing as competitive as ever – especially the market for luxury homes – it is critically important to Seattle Bank’s Specialty Mortgage team to remain an important resource for our clients. We are committed to staying on top of trends in the current market, as well as the financial challenges and opportunities it may pose.
Here are a few key takeaways for Spring 2021:
- Despite a global pandemic, U.S. home prices have soared, with several cities seeing double-digit price growth. Economists predict the median existing-home sales price will continue to increase as more sellers begin participating in the market in the second half of the year. (Source: Kiplinger)
- The inventory of homes for sale in the U.S. continues to be well below normal levels, due to homeowners who simply aren’t selling. Total available inventory is 40.7% lower than a year ago and 35.5% lower than in the fourth quarter of 2020. (Source: Windemere)
- In this seller’s market, bidding wars have not been uncommon. Numbers are showing that homes have taken an average of just 20 days to turn pending. (Source: Monday With Matthew)
- There has been a recent uptick of city dwellers opting to move to the suburbs. With many Americans working remotely - possibly indefinitely for some - a household living in a smaller condo in the city can now move further out into a larger, more affordable house. This trend has meant a major boon to suburban sellers. (Source: Kiplinger)
Given today’s highly competitive market, it is increasingly important that potential borrowers obtain a full pre-approval and clear financing timeline before making an offer on a home. It is also important to recognize that with fewer options for cash-out financing, using a margin line or other assets to pay for a home in cash may result in unexpected liquidity challenges if the buyer cannot find a lender that will provide a loan to restore those assets.
More than ever, the key to a successful transaction is partnering with a mortgage specialist who understands the current market and saves clients time in finding the most effective financing for their home purchases.
Seattle Bank continues to offer adjustable-rate, portfolio jumbo and super jumbo loans. We also offer cash-out refinancing, as well as bridge loans to help facilitate real estate transactions. Our Specialty Mortgage team will use their expertise to provide relevant answers to questions, a faster approval and funding process, and an overall better experience.
Contact a Specialty Mortgage Expert Today!
Doug Mielitz, Vice President, Mortgage Production
(206) 436-3448 • [email protected] • NMLS ID# 518802
600 University Street, Suite 1850, Seattle, WA 98101