Hot Housing Market Likely Won’t Cool in Winter – Industry Outlook

By November 9, 2020Industry Outlook

Hot Housing Market Likely Won’t Cool in Winter – According to®, while winter may be typically a slow season in real estate, economists predict it isn’t likely to happen this year. Lawrence Yun, chief economist of the National Association of REALTORS®, says “it will be one of the best winter sales years ever.” Low inventories combined with high demand due to record-low mortgage rates is sending buyers to the market in a flurry. Many home buyers are looking to upsize their homes as they work from home and their children attend school at home. Also, as remote work remains an option for many and some employers make it a permanent situation for office workers, some house hunters are looking farther away from city limits in search of bigger homes and greater affordability. “We currently see buyers sticking around in the housing market much later than we usually do this fall,” says Danielle Hale,®’s chief economist. “If that trend continues, we will see more buyers in the market this winter, too. So this winter is likely to be a good time to sell.”

Source and link to the full article: “Why This Winter’s ‘Slow’ Home-Selling Season May Be Hotter Than Ever,”® (Nov. 2, 2020)

What Will Homes Be Worth in 10 Years? – Based on a recent study by Renofi®, homeowners are watching their home values climb significantly this year, and prices are expected to continue to appreciate over the next decade. The National Association of REALTORS® reported that the median existing-home price for all housing types in September was $311,800, a 14.8% increase compared to a year ago. But how high are prices poised to go over the next decade? Home prices in the U.S. have increased by nearly 49% in the past 10 years. If they continue to climb at similar rates over the next decade, U.S. homes could average $382,000 by 2030. To estimate property prices in 2030, Renofi analyzed the average price in every state and the 50 largest cities, comparing them from September 2010 to September 2020.

Projecting 2030 House Prices By State

Projecting 2030 House Prices by City

Source and link to the full article: “Projecting the Value of Homes in the US in 2030 & Analyzing the Impact of COVID-19,” Renofi blog (October 2020)

Metros Are Where Homeownership Wealth Gains Are Highest – According to data from the 2019 Survey of Consumer Finance, homeownership accounts for 90% of total wealth. Owners in areas with rapid price appreciation are filling their pockets the fastest. “Housing wealth accumulation takes time and is built up by paying off the mortgage debt and by price appreciation,” Scholastica “Gay” Cororaton, a research economist at the National Association of REALTORS®, writes on the association’s Economists’ Outlook blog. “And while home prices can fall, home prices tend to recover and go up over the longer term. As of September 2020, the median sales price of existing-home sales was $311,800, a 35% gain since July 2006 when prices peaked at $230,000.” People who purchased a home 30 years ago would typically have gained an average of $283,000 as of the second quarter of 2020, according to NAR.

Source and link to the full article: “Metro Area Wealth Gains From Homeownership as of 2020 Q2,” National Association of REALTORS®’ Economist Outlook blog (Oct. 30, 2020)

More New Listings Are Finally Emerging – Based on new reports from®, buyers may finally be getting more housing choices. The number of newly listed homes is showing the most improvement since March.® says its data shows the housing market is gradually moving toward a more balanced one when it comes to inventory. Plus, an overdue seasonal slowdown may be starting to take hold. Still, the number of homes for sale remains at record lows. Homes are selling 14 days faster than a year ago as demand stays high. However, glimmers of hope for buyers are emerging as more listings hit the market. “The number of buyers in the market remains well above the seasonal norm, but recent data shows sellers may be losing some of their grip when it comes to having the upper hand,” says Javier Vivas, director of economic research for®. “For the first time since June, we saw an unseasonably large share of price reductions and a slight softening in buyer demand. Months of double-digit price gains and a record low number of homes for sale may finally be translating into buyer fatigue in many markets. If this continues, we may see price reductions ramp up and quick home sales ease through the end of the year.”

Source and link to the full article:®

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