RE/MAX: April home sales, inventory fell 20% as prices moved up
The first full month of Covid-19 quarantine drove down average home sales, which fell 20.2% year-over-year in April 2020, and housing inventory shrunk by 20.5%, according to RE/MAX.
In April 2020, the median of all 53 metro markets’ Median Sales Prices increased 9.3% from a year ago, and 4.2% from March 2020, to $276,000 – a report record for April.
No metro areas saw a year-over-year decrease in Median Sales Price.
Social distancing restrictions changed traditional patterns. There were fewer sellers, and fewer buyers. During normal market conditions, March and April are transition months. Typically, the busiest month is May or June, with July and August close behind.
Four markets, New York, Detroit, Miami and San Francisco, posted year-over-year sales declines of more than 40%, followed by eight markets with less than 10% sales declines. Only Minneapolis, MN and Billings, MT reported sales increases.
“April results were better than many expected, as consumers continued to buy and sell real estate in one of the most challenging months for housing in memory,” said Adam Contos, RE/MAX CEO. “This was a headwind like no other – yet we still saw activity across the country.”
The number of homes for sale in April 2020 was down 2.2% from March 2020 and down 18.2% from April 2019, but the Months Supply of Inventory increased to 3.5 compared to 2.9 in March 2020, and higher than 3.0 in April 2019.
Year over year, Days on Market dropped seven days to 46, setting a new low for April in the report’s 12-year history, the report notes.
“Buyer demand remains relatively strong despite the pandemic, and sellers who pulled their listings in March or April will hopefully come back into the market this summer,” Contos said.
aboutMYmortgage.com patent for sale starting at $5MM
Tim Allen, CMB,Founder of Naples, Fla., based aboutMYmortgage.com, LLC (AMM), has placed the company’s patented service up for sale at a minimum asking price of $5 million.
“All reasonable offers will be evaluated,” Allen said. However, if the minimum asking price is met by Monday, June 15, 2020, and the terms of the offer are acceptable, AMM will be sold to the highest bidder. The company may withdraw this offering, in case a bid is accepted before June 15, 2020.
AMM’s stated goal, according to the patent description is “to provide a customer retention solution, which links mortgage customers who are contemplating refinancing their mortgage with another lender, back to their existing mortgage servicer.”
This way, the platform affords the servicer “the opportunity to offer their customer valuable information” about their existing mortgage, a home equity loan, refinancing options, bi-weekly mortgage payments, mortgage modification “and/or other products that the servicer offers.”
AMM’s mission, according to the company website, is to help homeowners make better financing decisions by directly connecting with retention specialists at their mortgage servicer to get information and customer guidance.
The AMM platform has the potential to process and generate “tens of millions of dollars annually for a company that has web traffic and knows how to convert that web traffic into leads,” Allen explained in a statement, so it can generate significant savings in customer retention for mortgage loan servicers.
The company’s issued patent: U.S. Patent No. 8,660,939 entitled: Method for Mortgage Customer Retention. AMM is a mortgage company that brings three key services.
- The I.P. – U.S. Patent No. 8,860,939 is fully in place until Oct 2027, and ready to provide mutually beneficial opportunities to borrowers and their mortgage servicers.
- The company is a mortgage brokerage licensed in Florida, Georgia, and Pennsylvania and presently can sell mortgage leads in 29 additional states.
- Even though it is a licensed brokerage, AMM “has never originated any mortgages, so there are no past loan problems for a purchaser,” according to Allen.
PHFA invites applicants for 2021 Housing Policy Fellowship
The Pennsylvania Housing Finance Agency (PHFA) announced the opening for applications for its 2021 Housing Policy Fellowship, which aims to fund critical research and promote leadership in the affordable, low-to-moderate and special needs housing finance marketplace.
The application deadline is 3 p.m. on Friday, Sept. 11, 2020.
“We’re pleased to be able to offer our Housing Policy Fellowship again for 2021,” said PHFA Executive Director and CEO Robin Wiessmann. PHFA and the housing community profit “from the research findings our fellows produce on topics of immediate and practical benefit.”
The fellowship will fund a maximum of 12 months of research on a pressing housing or community development topic that will help solve community development challenges. Findings will be publicly available. As importantly, PHFA said in a release, the fellowship invests in nurturing and promoting future housing leaders.
PHFA offers researchers a $1,000 monthly stipend up to a maximum of $12,000, which may support various approved research activities, including interviews with experts, study materials, or travel to relevant conferences.
“We look forward to continuing to help our fellows gain experience to become strong, future housing leaders,” said Wiessmann.
All qualifying criteria is available on the agency’s homepage All legal residents of the state over the age of 18 are eligible to apply, excluding PHFA staff and board members.
Amilda is a journalist and branding consultant interested in how entrepreneurs turn brilliant ideas into products and services that advance business acumen and improve people’s lives in unprecedented ways. She has covered mortgage finance for over 15 years.