An Expanding Economy, Stable Rates, and Slight Price Increases

Photo by Rogério Toledo on Unsplash

Are you ready for good news? I am. For real, it’s not all doom and gloom in the world, especially in real estate! The National Association of Realtors just held their first ever Real Estate Forecast Summit, and the consensus among the economists was good for the American economy as a whole, and real estate specifically. NAR’s Chief Economist Lawrence Yun said “Real estate is on firm ground with little chance of price declines…However, in order for the market to be healthier, more supply is needed to assure home prices as well as rents do not consistently outgrow income gains.” Let’s keep building housing, especially denser and more multi-generational living!

So what does this mean for you as a future buyer, current owner, or future seller? “The average annual 30-year fixed mortgage rates of 3.8% and 4.0% are expected for 2020 and 2021, respectively. Annual median home prices are forecasted to increase by 3.6% in 2020 and by 3.5% in 2021.” Rates in the 3-4% range are still incredibly low! This makes every dollar more powerful, so that’s good news for buyers, and sellers who will have a pool of prospective buyers who can spend more. For owners and sellers, prices will still be growing, but at a reasonable rate, which is actually about what the average has been since the end of WWII.

When you are ready to start talking about your 2020 real estate plans, don’t hesitate to reach out!

Source: NAR