Many Real Estate Markets Around The Country Are Better Than Before COVID-19!
Home Showings Are Higher Than Before COVID-19
Not only are home showings up, they are higher than they were at the beginning of the year.
While they may have dipped during the worst of the shutdowns, low mortgage rates have led eager Buyers back to the market.
Still, Sellers have been slow to return at the same rate, making many markets extra competitive.
If you are thinking about selling and have been hesitant to list, this graph just might help motivate you to make a move sooner than later.
Majority of Economists Predict Price Appreciation
While the economy’s status continues to be a source of concern, most economists predict that low supply and high demand will continue to fuel home price appreciation.
Today's market is different than the one that led to the housing collapse. Before the Great Recession, the housing market had:
Irresponsible mortgage lending
An oversupply of homes
Overtapped equity
Today’s market looks the opposite with:
Stricter lending practices
An undersupply of homes
More equity
Buying a home now is a good financial decision. Plus, low mortgage rates have made homes more affordable than ever, making this the perfect time to “move up.” The graph below from Realtor.com depicts the large range of projections on future home prices.
Unemployment Will Not Lead to Mass Foreclosures
It is an easy assumption. If people can’t pay their mortgage, they will have to foreclose.
And while under ordinary circumstances, that is definitely true. But these are not ordinary circumstances.
The CARES Act enacted for coronavirus relief allows forbearance up to one year for all federally or GSE-backed mortgages including FHA, VA, USDA, Fannie Mae, Freddie Mac. For homeowners who do not have a government-baked mortgage, most private lenders are also offering extensions on forbearance forgiveness.
No one wants to see what happened in 2008 to happen again. Knowing that this is not 2008 all over again, gives us all confidence in the real estate market right now.
91% of Economists Believe We’re Already in a Recovery or Will be Soon
Recession is a scary word but context is everything. The “flatten the curve” mentality temporarily closed many businesses, naturally leading to a period of decreased economic activity.
What happens when economic activity declines for an extended period of time? A recession, at least according to the technical definition.
But as businesses pick back up, economic activity does too. This slide shows that despite the uncertainty of the past couple of months, 91% of economists thank that the economic recovery has already begun, or will as soon as the 3rd quarter of this year.
This should be good news for Buyers and Sellers!
The Housing Market Is Almost Back To What It Was Before COVID-19!
Before COVID-19, the real estate market was strong. Supply was low, demand was high, and affordability fueled by low mortgage rates was a big motivator. While buying and selling understandably slowed at the height of the pandemic’s shutdown, the slide below shows that supply, demand, price and time on market are almost back to what they were in February.
If you had any doubts or concerns that a recession would cause the market to collapse, this view of the market should help ease your worries.
Bottom Line
With information coming from all sides, especially on the news and the Internet, it is important for us as your Real Estate Advisors | REALTORS to step up and be the real estate experts you can rely on!
While the real estate market may be heating back up, there is still a lot of speculation about what the future holds. In order to build trust in our communities and calm fears among our clients, we will continue to share the right information the right way, directly with you.
These graphs are a great starting point, but we promise persistence to get the message out there. Be sure to check out our BLOG regularly for updated information on what is happening in the real estate market. And know that we would be honored to assist you!
