Category Archives: Market Stats

What Will 2020 Bring in the Real Estate Market?

As we finish 2019 and start 2020, there are always many questions about what the coming year will bring. The real estate market is no different. Will 2020 bring appreciation or deprecation of home prices, fluctuation in mortgage interest rates, increase or decrease in building and what is expected regarding the amount of activity in the housing market? It’s impossible to know for sure but here are some predictions for 2020.

Freddie Mac’s latest forecasts predicts that mortgage rates should remain at ultra-low levels in 2020 and even 2021, hovering around 3.8%. 2019 saw significant mortgage refinancing with rates so low. The number of homes sold in 2019 is expected to reach around 6 million with slight increases each year through 2021. Home pricing won’t drop but the appreciation rate is expected to slow with current annual growth finishing 2019 around 3.2% and dropping slightly to 2.9% in 2020 and 2.1% in 2021.

Redfin’s latest forecast expects the first half of 2020 to see an increase in homes that receive competing offers due to increased demand brought on by low interest rates and rising tenure. This will bring increased prices, which will lure other sellers to the market and help the market inventory levels balance out towards the end of 2020.

Overall expectations trend positive but there are several sources including Zillow that predict 2020 will bring the start of the next recession. Recessions are cyclical and are impacted by many factors in the economy, but housing can play a key role in the determination of a recession. The next recession isn’t likely to see housing at the center like the last one, but an overall weakened economy will impact the housing market as well if employment, spending and interest rates see changes.

Lawrence Yun, Chief Economist with the National Association of REALTORS® predicts prices will appreciate between 3 and 5% in 2020. Builders continue to start more homes but are still unable to keep up with current demand. This will be felt stronger in low to mid-priced homes as millennials are currently approaching 50% of the current market activity.

Predictions are always uncertain and never exactly right due to many variables but overall expectations for 2020 anticipate mostly positive news coming out of the real estate market. If you are ready to talk about applying a strategy to your long-term real estate goals, contact me today so we can determine how to make the most of the current real estate market for you. I will be happy to answer any questions you may have, help you to find your dream home or determine the value of your existing property.

 

Nancy Davidson
Mammoth Village Properties
760 937-2301 mobile
nancy@mammothcountry.com
www.MammothCountry.com
CA Brokers License #01264041

Image by Steve Buissinne from Pixabay 

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2019 Real Estate Forecast

2019 Real Estate ForecastIn many parts of the country, 2018 was a good year for real estate. While it could have been better if there were more homes available for sale, homes were appreciating, and interest rates remained relatively low making it a very profitable time to sell your home and a nice time to buy if you could find the right house for you. Will 2019 see more of the same or can you expect a change as the new year progresses? Here are a few things to keep watching.

  • Interest rates will continue to rise as 2019 progresses stretching buyer’s budgets and limiting the amount buyers can spend on a home.
  • Home price appreciation will continue to slow as inventory amounts begin to stabilize. Prices will still climb, just at lower levels than recent years.
  • Inventory levels will increase as competition dwindles but most inventory will be in mid to high price ranges and not in entry-level homes where it is still desperately needed.
  • Most areas will continue to experience a seller’s market, but demand will be lower than 2018 due to the highest interest rates of the last 10 years.
  • The largest segment of home buyers will continue to come from the millennials and the lack of entry-level homes available will leave many buyers waiting for the right home.
  • 2019 will see the market shift toward a more balanced direction from 2018 with multiple buyers bidding for properties and often at prices significantly more than the list price. This will be a thing of the past in 2019.
  • The biggest unknown of 2019 will be the impact the recent tax changes will have on the market. The new standard deduction will leave many people with fewer deductions due to the new standard and may mean you pay more in the long run depending on your income level.
  • Home sales will see a slight decline year over year as interest rates rise and inventory stays tight.

There is no way to predict exactly what will happen in 2019 and what it means for you in the short term. If your real estate goals are based on the long term benefits real estate offers you as an investment, you are more likely to see the benefits as real estate is considered one of the best long term investments. If you are ready to talk about applying a 2019 strategy to your long-term real estate goals, contact me today so we can determine how to make the most of the current real estate market for you. I will be happy to answer any questions you may have, help you to find your dream home or determine the value of your existing property.

 

 

Nancy Davidson
Mammoth Village Properties
760 937-2301 mobile
800 421-7005 office
866 278-7765 efax
nancy@mammothcountry.com
www.MammothCountry.com
CA Brokers License #01264041

Image courtesy of 472301/pixabay.com


 

2018 Real Estate Forecast

2018 Real Estate ForecastWhether you plan to be actively engaged in the 2018 real estate market or not, knowing where the market is headed is important for almost everyone. With 2017 just wrapping up, exact numbers on the year aren’t available but overall 2017 showed strong numbers with home prices up around 6% over 2016 at the end of September and interest rates remaining low through year end.

As 2018 kicks off, expect to see positive growth continue in the real estate market in most areas. Home prices are still expected to rise in 2018 but at a slower rate than the last couple years. Mortgage rates are expected to rise as the year progresses and could possibly reach 5% by year’s end. If you do want to buy a home in 2018, the sooner the better to take advantage of the low rates that are still available.

Many people have wanted to buy homes in recent years but the inventory, especially in homes that traditionally appeal to first time homebuyers, hasn’t been available. This year should change that as we get to the end of the year. It may take until fall to see growth in inventory levels but by year end things should tip in that direction offering more homes in all price ranges as inventory shakes down across the board.

Millennials were a huge portion of the 2017 homebuyers, almost 40% and will continue to play a significant role in 2018. They have established themselves career wise now and with the economy strong, many are well positioned to take on larger mortgages and not have to wait for the homes that typically appeal to first time homebuyers.

New home construction will play a significant part in the inventory shift in 2018. Based on recent building permit applications, new home starts in the single-family sector of homes will likely see growth top 8% providing lots of new homes to the market in 2018. As new homes are available in all prices, inventory will open up across the board as homeowners move up or down to meet their needs and leave existing homes that will become available in larger numbers.

Most news tends to look positive, but home affordability will take a hit if both home prices and mortgages rates rise as anticipated. While this isn’t welcome news, the anticipation of higher available inventory will give people options that weren’t available in 2017 and hopefully minimize the effects of this.

Because of rising prices in recent years and continued growth expected, new home equity lines of credit are expected to soar as more than 60% of current homeowners are expected to have enough equity in their homes to qualify.

No matter what your situation in 2018, overall news is positive. Even if you don’t buy or sell this year, having homes around you appreciate at a steady rate will keep the market strong for when you are ready for your next transition. For additional information regarding the real estate market, I will be happy to answer any questions you may have, help you to find your dream home or determine the value of your existing property

 

 

Nancy Davidson
Mammoth Village Properties
760 937-2301 mobile
800 421-7005 office
866 278-7765 efax
nancy@mammothcountry.com
www.MammothCountry.com
CA Brokers License #01264041

Image courtesy of deedster/pixabay.com


 

June 2017 Real Estate Market Update

graph-163549_960_720The June 2017 Mammoth Lakes Real Estate Market Update is now ready for your review. This market report provides an insight on the real estate market statistics for Mammoth Lakes. These statistics are helpful when you are considering buying or selling in today’s real estate market.

Nancy Davidson
Mammoth Village Properties
760 937-2301 mobile
800 421-7005 office
866 278-7765 efax
nancy@mammothcountry.com
www.MammothCountry.com
CA Brokers’s Lic# 01264041

Nancy Davidson is your ultimate real estate resource for Mammoth Lakes, CA and The Eastern Sierra. Visit my website for detailed information regarding today’s real estate markets.

Image courtesy PublicDomainPictures/pixabay.com