Americans’ Sky-high Savings to Make Spring Market Even Hotter:  Many American households are feeling richer, sitting on the nest egg they’ve built during the pandemic. Those savings may be released into the economy in new spending this spring and summer, which will bode well for the already surging housing market.  Personal savings increased to a 21% annual rate in the first quarter of this year.  Many Americans saved cash from the government’s COVID-19 stimulus programs, and those who have remained employed have been able to save money after sheltering in for months, decreasing spending on gas, clothes, entertainment, and travel. The reopening of the economy and federal stimulus funds led to a 6.4% annual GDP gain in the first quarter, the government reported.  A strong housing market also likely will continue in 2021 with sustained economic growth, declining unemployment, and historically low mortgage rates hovering.

Hot Housing Market Contributes To High Profits For Sellers:  Home sellers continue to see higher profits from their homes.  In the first quarter, sellers generated an average profit of $70,050 on the sale of their home, up 26% compared to a year earlier ($55,750), according to ATTOM Data Solutions’ 2021 U.S. Home Sales Report.  The $70,050 in profit accounts for a 34.2% return on investment compared to the original purchase price, which is also higher than the 30.8% from a year earlier.

Mortgage Rates Hover Around 3%:  Mortgage rates rose slightly by the end of April, but they remained below 3%. Freddie Mac reported that the average rate on the 30-year fixed-rate home loan inched up to 2.98% from 2.97% by the end of April.  Nevertheless, expect rates to move above 3% in the following weeks as the economy continues to recover.  The National Association of REALTORS® estimates rates to average 3.2% by the end of the year.

“This Isn’t a Bubble”:  The U.S. housing market is on a hot streak with double-digit annual gains in home prices, bidding wars, and surging buyer demand. That type of soaring housing market is prompting more “bubble” fears in some corners, but economists say the housing market isn’t getting overinflated.  “We have strong conviction that we are not experiencing a bubble in U.S. housing,” Vishwanath Tirupattur, a Morgan Stanley strategist, wrote. Lawrence Yun, chief economist of the National Association of REALTORS®, agrees. He told Axios last month:  “This is not a bubble. It is simply lack of supply.”  At the end of March, there were 1.07 million homes available for sale, according to NAR data. For comparison, during the housing bubble, in July 2007, there were more than four times that—4 million homes available for sale.

Home Staging That Looks TV-Ready:  TV design shows are increasingly influencing home buyers’ perceptions of what they expect to find on the market. Those are high standards. Sixty-eight percent of REALTORS® recently surveyed say their clients were disappointed by how homes appeared in real life versus on TV.  TV design shows are increasingly influencing home buyers’ perceptions of what they expect to find on the market. Those are high standards. Sixty-eight percent of REALTORS® recently surveyed say their clients were disappointed by how homes appeared in real life versus on TV. The survey found that the most important rooms to stage in the house are living room, primary bedroom and kitchen.