The number of existing home sales cratered in May, but real estate professionals — along with homeowners — say pent-up demand is roaring back, cheering sellers but threatening affordability for suburban and rural buyers competing with cash-flush buyers fleeing cities.
Home sales in May dropped by nearly 10 percent on a monthly basis, and plunged roughly 27 percent on the year, the biggest drop in nearly four decades, but has recently showed signs of stabilizing: For the week ending June 12, mortgage applications for home purchases rose to the highest level in more than 11 years, the Mortgage Bankers Association said. The group also noted that the number of mortgage loans in forbearance just ticked down in the second week of June. New home-sale data released Tuesday also outperformed economists’ expectations.
Michelle Pfeffer, a real estate broker at Better Homes & Gardens Rand Realty in New York’s Hudson Valley, said the state’s March stay-at-home directive slammed the brakes on real estate activity. “I saw a lot of people kind of hit the pause button,” she said. “It really started opening up again at the end of April and beginning of May.”
“With the shelter-in-place orders, real estate was shut down, but the moves were just delayed,” said Caroline Nelson, a broker at Compass Real Estate in California’s Marin County, north of San Francisco.
Source: NBC NEWS