Spark Global Limited Reports:
The Federal Housing Finance Agency extended relaxed lending and appraisal standards through the end of April. A record 36% of homes sold for more than list price in February, thanks to a history of buyer competition. Despite low inventories, the housing market is expected to remain resilient as economic growth is expected to pick up this spring. America’s $1.9 trillion rescue plan will pump billions of dollars into the housing market. Read on for the latest assessment news.
The Federal Housing Finance Agency loosened its lending and appraisal standards
On Thursday, the Federal Housing Finance Agency (FHFA) announced an extension of relaxed lending and appraisal standards for Fannie Mae and Freddie Mac, HousingWire reported. “The flexibility to replace validation for COVID-19 employment and assessment was scheduled to expire on March 31, 2021. However, government agencies are now pushing the date back to at least April 30, 2021.” Read the full story here.
Economic growth in the spring supported the housing market
According to the MReport, “The US economic expansion is expected to accelerate this spring, with real GDP growing at 8.4% in the second quarter and 6.6% for the year as a whole, slowing in 2022, as the weather warms and the COVID-19 vaccine is rolled out nationwide. According to a new commentary from Fannie Mae’s Economic and Strategic Research Group (ESR).” The housing market is expected to remain resilient despite the risk of higher interest rates and concerns that inventories are too low. Read the full article here.
Thirty-six percent of homes sold for more than list prices in February, the highest on record
According to a Redfin press release yesterday, “Historic competition for homes pushed sales prices up 14 percent, while new listing prices fell 16 percent.” The national median home sales price rose to $336,200 in February, the largest increase we’ve seen since 2013. The shortage of new listings has led to “more competition for buyers than ever before,” with 36 percent of homes selling for more than asking price in February, Redfin reports. Click here for more details and charts.