As you can see, home prices have been rising during the ‘lock-down’ and could rise even further due to heavy buyer competition and significant shortage of supply. The Real Estate forecast for the rest of the year varies in projections, but supply and demand will always determine prices. We’ve seen a clear spike in Home Prices, powered by historically low interest rates, dipping below 3% this past month. The number of homes for sale across the U.S. is down 31% and California’s inventory is down a whopping 43% year over year. Prices for existing homes jumped 7.4% in April 2020 compared to a year earlier.
Mortgage rates have fallen to a new all-time low and homebuyers are rushing out to take advantage, especially first-time home buyers and Millennials. Mortgages have averaged around 8% over the last 50 years! With rates below 3% and hovering just above, many can afford to buy in a higher price point. Existing home owners are taking advantage of refinancing or realizing that they need a bigger or smaller house after spending more time at home.
2019 COMPARED TO 2020
You can see the ‘V’ shaped recovery since March 2020 through June 2020.
Some forecasters speculated we would experience a ‘W’ shaped recovery.
We’re experiencing a new recession phenomenon, however.
In our current climate, unlike what we saw during the 2008 housing crisis,
home prices have appreciated in value, interest rates are low, and the demand for housing is higher than ever.
Currently, Real Estate is set up to help us out of an economic downturn, not into it.
DAYS ON MARKET
Bottom Line: Now is an incredible time to sell & buy a home!
WIN – WIN
KEY: SFH = Single Family Home FRM = Fixed Rate Mortgage
SFR = Single Family Residential
All data comes from the CRMLS, InfoSparks, Michael Lewis Marketing Suite, Altos R.E., Keeping Current Matters, NAR (National Association of Realtors) & CAR (California Association of Realtors) Current as of 7/28/2020.
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