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Builders Rush to Produce More Homes Homebuilders started on more homes at the end of the year, up by double-digit margins and the highest construction numbers since September 2006. Overall housing starts, reflecting single-family and multifamily construction, rose 5.8% in December 2020 to a seasonally adjusted annual rate of 1.67 million units, the U.S. Department of Housing and Urban Development and U.S. Census Bureau reported Thursday. ... Broken out, single-family starts rose 12% to a seasonally adjusted annual rate of 1.34 million units. The multifamily sector, which includes apartment buildings and condos, fell 13.6% to a pace of 331,000 units. Single-family housing starts for all of 2020 totaled 991,000, up 11.7% compared to the previous year. The worst of the housing shortage could soon come to an end, says Lawrence Yun, chief economist of the National Association of REALTORS. More inventory is clearly needed to lessen the heat of multiple offers and the consequent frustration of multiple losing bids. The builder association is still forecasting for production increases in 2021, but the gains could be tempered by ongoing supply-side challenges related to material costs and delivery times, a decrease in buildable lots, and regional labor shortages that are exacerbating affordability woes, said Robert Dietz, NAHB’s chief economist. Regionally, single-family and multifamily starts on a year-to-date basis (January through December 2020 compared to a year earlier) are highest in the Midwest, up 13.2%, followed by the South (7.5%), the West (6.2%), and the Northeast (2.8%).

What’s the Difference between an Appraisal and a Home Inspection? If you’re planning to buy a home , an appraisal is an important step in the process. It’s a professional evaluation of the market value of the home you’d like to buy. In most cases, an appraisal is ordered by the lender to confirm or verify the value of the home prior to lending a buyer money for the purchase. It’s also a different step in the process from a home inspection, which assesses the condition of t...he home before you finalize the transaction. Home Appraisal When you apply for a mortgage, an unbiased appraisal (which is required by the lender) is the best way to confirm the value of the home based on the sale price. Regardless of what you’re willing to pay for a house, if you’ll be using a mortgage to fund your purchase, the appraisal will help make sure the bank doesn’t loan you more than what the home is worth. Home Inspection Here’s the key difference between an appraisal and an inspection. MSN explains: In simplest terms, a home appraisal determines the value of a home, while a home inspection determines the condition of a home. The home inspection is a way to determine the current state, safety, and condition of the home before you finalize the sale. Bottom Line The appraisal and the inspection are critical steps when buying a home, and you don’t need to manage them by yourself. Reach out to a local real estate professional today so you have the expert guidance you need to navigate through the entire homebuying process.

DECEMBER HOUSING INDICATORS The Monthly Housing Indicators for Georgia are in for the month of December. Closed Sales increased by 18 percent year over year with median sales prices increasing by 13 percent. New Listings decreased 5 percent to 10,455... Pending Sales were up 29 percent to 10,619 Closed Sales were up 18 percent to 13,679 Inventory levels shrank 46 percent to 20,947 units The Median Sales Price increased 13 percent to $265,000 The Average Sales Price increased 14 percent to $316,979 Days on Market was decreased 31 percent to 41 days Months Supply of Inventory was down 50 percent to 1.6 months See more

2020's Existing-home Sales Attain 14-Year Peak Existing-home sales in 2020 surged to the highest level in 14 years, landing 22% higher than a year ago, the National Association of REALTORS reported Friday 1/22/2021. Existing-home salescompleted transactions that include single-family homes, townhomes, condos, and co-opsposted big gains year over year and rose by 0.7% in December 2020 compared to November 2020’s already unseasonably high rates.... Here’s a closer look at key housing indicators from NAR’s latest report: Days on the market: Seventy percent of the homes sold in December 2020 were on the market for less than a month. Properties typically remained on the market for 21 days that month, down from 41 days in December 2019. Housing inventories: Total housing inventory at the end of December totaled 1.07 million units, down 23% compared to a year ago. Inventories are at an all-time low at a 1.9-month supply at the current sales pace. First-time buyers: First-time buyers comprised 31% of sales in December, down from 32% in November. Investors/second-home buyers: Individual investors and second-home buyers purchased 14% of homes in December, a decline from 17% a year prior. Investors and second-home buyers tend to account for the largest bulk of cash sales, which accounted for 19% of transactions in December. Distressed sales: With moratoriums still in place, foreclosures and short sales comprised less than 1% of sales in December, down from 2% a year ago. Regional Breakdown Northeast: Existing-home sales rose 4.5%, a 27% increase compared to a year earlier. Median price: $362,100, up 19% from December 2019. Midwest: Existing-home sales were unchanged in December compared to November, but were up 26.2% from a year earlier. Median price: $235,700, a 13.7% annual increase. South: Existing-home sales rose 1.1% in December, up 20.7% annually. Median price: $268,100, an 11.3% increase from December 2019. West: Existing-home sales dropped 1.4% compared to a month prior but are nearly 18% higher than a year ago. Median price: $467,900up 14.2% from December 2019.

Why Moving May Be Just the Boost You Need As we look back over the past year, we’ve certainly lived through one of the most stressful periods in recent history . After spending so much more time at home throughout the health crisis, some are wondering if they should move to improve their mental health and well-being .... There’s logic behind the idea that making a move could improve someone’s quality of life. When people change their scenery, they often feel happier . Catherine Hartley, an Assistant Professor at New York University’s Department of Psychology: Our results suggest that people feel happier when they have more variety in their daily routineswhen they go to novel places and have a wider array of experiences. So, if you’re thinking of moving this year to help boost your happiness factor, here are a few questions to ask yourself as you make your decision. How’s the Weather? Is the weather something that’s important to you? Does it have a tendency to impact your mood? Should I Choose the City, Suburbs, or Country? Can you work from home? Are you open to a longer commute in the future? If so, a move to the suburbs or even a quieter rural area may be a win for you. Bottom Line As we look beyond the trials of the pandemic, many are hoping for a new beginning, and that may mean moving. Contact a local real estate advisor today to talk about your new goals and options in today’s market.

Existing-Home Sales Rise 0.7% in December, Annual Sales See Highest Level Since 2006 Existing-home sales totaled 5.64 million in 2020, up 5.6% from 2019 and the most since before the Great Recession. The median existing home sales price was $309,800, up 12.9% from one year ago.... Housing inventory sank to 1.07 million and a 1.9-month supply both historic lows. Existing-home sales rose in December, with home sales in 2020 reaching their highest level since 2006, according to the National Association of Realtors. Activity in the major regions was mixed on a month-over-month basis, but each of the four areas recorded double-digit year-over-year growth in December. The median existing-home price2 for all housing types in December was $309,800, up 12.9% from December 2019 ($274,500), as prices increased in every region. December's national price increase marks 106 straight months of year-over-year gains. Existing condominium and co-op sales were recorded at a seasonally-adjusted annual rate of 730,000 units in December, up 1.4% from November and up 17.7% from one year ago. The median existing condo price was $272,200 in December, an increase of 6.9% from a year ago.