Here’s the National Real Estate Market Update. .
What are the projections for housing prices according to the experts? What’s going to happen?
This seems to be the question of the hour, we get asked it constantly. I’ve been in the industry for over 10 years and I don’t think there has ever been a time of so much uncertainty, so I can see how it can be scary. So, what is going to happen to the real estate market? Well, obviously, I don’t have a crystal ball, but let’s look at what the real estate experts and advisors across the nation are forecasting. Only two of the major organizations are saying that we will decline.
There is a Large Range of Projections on Future Home Prices. Seven of the nine are projecting house prices to go up ranging from about 2.3% to 4.4%.
We believe that the lack of inventory has a significant impact on the projections going up. Right now we can’t bring homes to market as fast as people are buying them. Locally, we are seeing prices increase substantially in certain areas and the demand from buyers is substantial.
This is also happening nationally, here’s a quote from Move.com:
“Summer home buying season is off to a roaring start. As buyers flooded into the market, Realtor.com monthly traffic hit an all-time high of 86 (eighty-six) Million unique users in June 2020, breaking May’s record of 85 million unique users.”
I personally feel that the low interest rates have a lot to do with buyer demand. The record-low mortgage rates have converted some prospective buyers into active buyers. Many times as economic downturn causes interest rates to go down, but as we see the economy recover we should assume that rates will go up, but just today the FED has committed to keeping interest rates near zero for years. Remember, as interest rates go down, a buyer’s buying power goes up, meaning they are able to afford and qualify for more and their payment does not go up.
Also, if you look at the amount of home purchase applications that were taken out from buyers, according to the MBA (Mortgage Bankers Association), we see that we have 11 straight weeks of year over year increases in application for a loan to purchase a home from buyers. So according to experts and analysts across the country, the projections are positive.
For more information or to just chat about what may or may not be best for you, we look forward to hearing from you here at One World Realty.