Courtesy of
Ashley Miller
Associate Broker
334-332-8328 (Direct)
334-826-7111 (Office)

              

July Market Minute Update for Auburn/Opelika!
 
Hey, Auburn & Opelika! Here is your Market Minute video detailing AUBURN & OPELIKA home sales stats for June 2021.
 
As we turn the half-way mark in 2021, the Auburn and Opelika real estate markets have increased in both sales and price. With continued demand and low inventory, this trend appears to stay with us through 2021. I hope this info is helpful as you make real estate decisions.  If I can help you in any way, please let me know.  Thank you for watching and have a great day!
 
For more info, click the link at the top to watch the full video.
What Do Experts See on the Horizon for the Second Half of the Year?
As we move into the latter half of the year, questions about what’s to come are top of mind for buyers and sellers. Near record-low mortgage rates coupled with rising home price appreciation kicked off a robust housing market in the first half of 2021, but what does the forecast tell us about what’s on the horizon?
 
Mortgage Rates Will Likely Increase, but Remain Low
Many experts are projecting a rise in interest rates. The latest Quarterly Forecast from Freddie Mac states:
 
We forecast that mortgage rates will continue to rise through the end of next year. We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.”
 
However, even as mortgage rates rise, the anticipated increase is expected to be modest at most, and still well below historical averages. Rates remaining low is good news for homebuyers who are looking to maximize their purchasing power. The same report from Freddie Mac goes on to say:
 
“While higher mortgage rates will help slow the pace of home sales and moderate house price growth, we expect overall housing market activity will remain robust. Our forecast has total home sales, the sum of new and existing home sales, at 7.1 million in 2021....”
 
Home Price Appreciation Will Continue, but Price Growth Will Likely Slow
Joe Seydl, Senior Markets Economist at J.P. Morgan, projects home prices to continue rising as well, indicating buyers interested in purchasing a home should do so sooner rather than later. Waiting for rates or home prices to fall may not be wise:
 
“Homebuyers—interest rates are still historically low, though they are inching up. Housing prices have spiked during the last six-to-nine months, but we don’t expect them to fall soon, and we believe they are more likely to keep rising. If you are looking to purchase a new home, conditions now may be better than 12 months hence.”
 
Inventory Remains a Challenge, but There’s Reason To Be Optimistic
Home prices are rising, but they should moderate as more housing inventory comes to market. George Ratiu, Senior Economist at realtor.com, notes there are signs that we may see the current inventory challenges lessen, slowing the fast-paced home price appreciation and creating more choices for buyers:
 
We have seen more new listings this year compared with 2020 in 11 of the last 13 weeks. The influx of new sellers over the last couple of months has been especially helpful in slowing price gains.”
 
New home starts are also showing signs of improvement, which further bolsters hopes of more options coming to market. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), writes:
 
“As an indicator of the economic impact of housing, there are now 652,000 single-family homes under construction. This is 28% higher than a year ago.”
 
Finally, while it may not fundamentally change the market conditions we’re currently experiencing, another reason to be optimistic more homes might come to market: our improving economy. Mark Fleming, Chief Economist at First American, notes:
 
“A growing economy in the summer months has multiple implications for the housing market. Growing consumer confidence, a stronger labor market, and higher wages bode well for housing demand. While a growing economy and improving public health conditions may also spur hesitant existing owners to list their homes for sale, it’s unlikely to significantly ease the super sellers’ market conditions.
 
Bottom Line
As we look at the forecast for prices, interest rates, inventory, and home sales, experts remain optimistic about what’s on the horizon for the second half of 2021. Let’s connect today to discuss how we can navigate the market together in the coming months.
Congrats to Brad and Lindsey on their purchase of a home in Auburn! We had several connections but had never met until it was time for them to find a house. Through the process my message was to be patient and not chase the market as things were moving so fast. The right home came available, and we were able to get an agreement in place and have a smooth closing process. Welcome home to Auburn!
Sportsplex Kids Triathlon & Small Fry Tri
Mark your calendars and sign up!  The Sportsplex Tri for Kids is a kids triathlon benefitting the American Cancer Society and will be held on Aug. 7, 2021, at 7:30 a.m.
 
Participants will compete based on their age as of 12/31/21. 5-year-olds may participate in the Kids Tri or the Small Fry Tri. In order for a 5-year-old to compete in the Kid’s Triathlon, they will need to do a paper registration. The paper registration deadline is 7/23/21.
 
Ashley Miller
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RE/MAX Professional Partners
1434 Opelika Road, Suite A, Auburn, AL 36830
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