Pending home sales are exceeding pre-pandemic levels and defying forecasts. August marked the fourth consecutive month of escalating sales contract activity, with all four major regions of the U.S. posting higher year-over-year pending home sales numbers, the National Association of REALTORS® reported Wednesday.
NAR’s Pending Home Sales Index—a forward-looking indicator based on contract signings—increased 8.8% in August to a record high of 132.8. (An index reading of 100 is equal to the level of contract activity in 2001.) Contract signings are now 24.2% higher than a year ago.
“Tremendously low mortgage rates—below 3%—have again helped pending home sales climb in August,” says Lawrence Yun, NAR’s chief economist. “Additionally, the Fed intends to hold [its] short-term funds rates near 0% for the foreseeable future, which should, in the absence of inflationary pressure, keep mortgage rates low, and that will undoubtedly aid home buyers continuing to enter the marketplace.
Right now may seem to be one of the worst possible times for millennials to invest in their first-ever homes. And yet, the real estate market is booming for millennials. According to Realtor.com’s 2020 Housing Market Predictions, millennials will comprise the largest percentage of home buyers this year. This shouldn’t seem too surprising, as the millennial age group is currently the largest generation within the American population — except for the fact that millennials are infamous for preferring renting over buying.
Securing first-time homebuyers in the millennial generation should be at the top of a real estate agent’s priority list according to this recent data. Here are three tips to help millennial first-time homebuyers complete a successful purchase that they feel good about.
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