There are lots of words we can use to describe 2020 and they seem to be changing by the day. We are certainly living in a new time where it has become very challenging to know what to expect today and in the future. Real estate is a constantly changing industry and this year has presented even more variables than normal. What can we expect as we begin the second half of the year?
It’s no secret that home sales took a plunge in March and April. With everyone staying home and some jobs slashed temporarily, some buyers cancelled contracts while others just put their real estate plans on hold. This caused a sharp decline in sales as reported by the National Association of Realtors (NAR) in their most recent statistics released. It’s too early to tell if this is making a turn around but in many markets showing activity picked up dramatically in May, which means sales should as well though it’s just too early to have actual statistics for that time period. While the number of homes sold saw a drop, pricing remained steady and has even seen a little upward pressure recently due to limited inventory and increasing demand.
Recently, Lawrence Yun, Chief Economist for NAR said, “The recovery in housing is happening faster than expected. We anticipated a drop off in Q3. But we don’t think that’s the case anymore. We revised our Q3 numbers higher. Before, we predicted a 2 percent decline in purchase originations in 2020, now we think there will be 2 percent growth this year.” NAR does a great job analyzing housing statistics and has their finger on the heartbeat of the market, so their positive indications speak well for the market.
Recent predictions on housing prices have differing opinions but significant depreciation isn’t anticipated by anyone. This is not 2008! Supply and demand will play a critical role in where prices go in 2020. It is always important to remember that real estate is local in nature. With everything going on currently, some markets are still fairly inactive while others have seen recent surges as people are forced to make moves and can’t wait any longer.
If you aren’t sure where things stand in our market, call me today. I am always available to discuss your property and your future real estate goals and how I can help.
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.