Nobody expected 2020 to look anything like it does right now. Not only have we had to reassess the way we live our day-to-day life during this pandemic, the real estate industry has had to drastically adjust forecasts. So, where does that leave us in terms of the current housing market?
Selling a House in 2020
As COVID-19 carries on, home sales have fallen as people have reservations about buying or selling a house. The unsteady economy is going to affect buyers and sellers across the board as the market grapples with the lingering effects.
Sales of existing homes are expected to drop about 15 percent from 2019, with realtor.com® anticipating $4.5 million in sales in 2020, compared with 5.34 million last year. Fortunately, we can count on millennials eager to own a home to boost sales later this summer. That said, economists also predict another setback toward the end of the year, as sellers who don’t want to lower their asking prices may end up pulling their homes from the market.
It’s Still a Good Time for Home Buying
If you’re looking into home buying, there’s no need to despair. Record-low mortgage interest rates will offset some of the slightly higher home sales prices. Rates are expected to be around 3.2 percent this year, and they could even fall into the 2 percent range later in 2020.
Some buyers may have a difficult time snatching up those low mortgage rates because lenders are requiring higher credit scores and down payments. But it doesn’t seem to be putting a hamper on things. According to realtor.com, there are signs that the better-than-expected jobs situation (i.e. unemployment falling to 13.3 percent in May) is already having a positive effect on the housing market, with more home buying taking place now than at this time last year.
It should be noted that buyers are also looking at new locations for homes as extended periods in the house caused many to recognize how important space is. Now, many people are searching for more affordable areas where they can have more room at the same price.
If you’re looking to buy or sell in the current housing market, be sure to keep up with real estate news. It’s going to be an interesting ride!
According to the NRIA :”All of this staying at home has given people time to re-evaluate what they really want and need in a residence. Zillow, Redfin and Realtor.com have all recently suggested that Americans are clamoring to escape the closeness of urban living and rush to bigger places and quieter spaces.”