SEATTLE, Dec. . Dec. 22, 2020 / PRNewswire / – (NASDAQ: RDFN) – November was the cheapest month to buy a home in 2020, according to a new report from Redfin, the technology-based real estate agent. The average monthly mortgage payment hit a low of 1 in November. $ 094, down from a high of $ 1. $ 163 in February, the month before the coronavirus was declared a pandemic.
Redfin analyzed the average monthly mortgage payments based on the average list price and the average monthly mortgage rate, both nationally and for the 50 most populous metros in the US. S.. . without December. The nationwide median price in November was 336. $ 000, the highest median price ever. However, this was offset by an average mortgage rate of 2. 77%, the lowest figure in its history. Both sides of the equation have been fueled by the pandemic: prices have been driven higher by remote working and Americans’ desire to move to more spacious homes, while low mortgage rates are in part a result of the Federal Reserve’s response to a weak economy.
« It’s easy to forget that price is only part of the equation of how much home a buyer can afford, » said Redfin chief economist Daryl Fairweather. “The relationship between historically low mortgage rates and rising property prices was fascinating to observe this year. We saw that mortgage rates created unanticipated demand for homebuyers, driving prices up over 15% in the past few weeks. The good news for those buyers who are facing a shortage of homes for sale and fierce bidding wars is that today’s mortgage rates below 3% largely offset high prices once you land a home. ”
April was the second best month of the year for homebuyers with an average monthly mortgage payment of 1. $ 112, just $ 18 more than November. The relatively low median payment in April was mainly due to a housing market slump caused by buyer uncertainty about buying a home at the start of a pandemic. Prices rose 4. 9% compared to the previous year to 304. $ 000 in April, a slowdown from 7% growth in the previous month. The average mortgage rate was 3. 31%, a decrease of 3. 62% at the beginning of the year.
Low inventory levels and intense competition were barriers for buyers Although November was the cheapest month to buy a home, the low number of homes for sale and the high rate of bidding war made it difficult for many potential buyers to find and earn a home. Nationwide 54. 3% of Redfin listings were competitive in November, the sixth straight month that more than half of the listings encountered competition.
Seattle Redfin agent Shoshana Godwin said many of her home-buying customers are frustrated by rising prices and competition even though mortgage rates are low.
« Many of my buyers would be surprised to hear that November was viewed as a good month to buy, » said Godwin. “Although monthly mortgage payments are lower than they were at the beginning of the year, buyers still face five to 15 competing offers for desirable homes. People have to find a home and take up their offer before they can benefit from low prices. ”
The nationwide average mortgage payment increased slightly by $ 21 in November year over year. However, the median mortgage payment was down in 30 of the 50 metros included in this analysis from last November.
November was the cheapest month to buy for the majority of U.. . S.. . metros November was the best month to buy a home in 35 of the 50 largest metro areas in the United States. S.. . This includes San Francisco, where the average mortgage payment for a home purchased in November is 4. 420 USD, the highest payment of any subway system included in this analysis, and Seattle, where payment was 2. 047 USD.
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World News – AU – November was the best month to buy a home in 2020 – Williamson Source
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