Tuesday, July 14, 2020 / by Austin Goodale
One of the biggest questions on everyone’s minds these days is: What’s going to happen to the housing market in the second half of the year? Based on recent data on the economy, unemployment, real estate, and more, many economists are revising their forecasts for the remainder of 2020 – and the outlook is extremely encouraging.
Here’s a look at what some experts have to say about key areas that will power the real estate industry and the economy forward this year:
Mortgage Purchase Originations:
Joel Kan, Associate Vice President of Economic and Industry Forecasting, Mortgage Bankers Association
“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.”
Lawrence Yun, Chief Economist, National Association of Realtors
"Sales completed in May reflect contract signings in March and April – during the strictest times of the pandemic lockdown and hence the cyclical low point...Home sales will surely rise in the upcoming months with the economy reopening, and could even surpass one-year-ago figures in the second half of the year.”
George Ratiu, Senior Economist, realtor.com
"We can project that the next few months will see a slow-yet-steady improvement in new inventory...we projected a stepped improvement for the May through August months, followed by a return to a historical trend for the September through December time frame."
"Going forward, we forecast the 30-year fixed-rate mortgage to remain low,
falling to a yearly average of 3.4% in 2020 and 3.2% in 2021.”
The experts are optimistic about the second half of 2020. If you paused your 2020 real estate plans this spring or summer, let’s connect today to determine how you can re-engage in the process.
And remember, if you, or anyone you know, is thinking of making a move soon or in the near future, call or text us at (480) 734-8781 or (602) 799-7099 with their name and number, and we'll make sure to help them achieve their selling or buying goals. Even better, when you make a real estate referral to us, it helps us support the House Of Refuge, in Mesa, which provides transitional housing and job services that help homeless families who need a bit of help to get back on their feet -- your referrals help us fund this very worthy cause, and make a brighter future for less fortunate families in our community. Please join us in this effort!
We truly appreciate your friendship, your referrals, and your business!
We wish good health to you and yours!
Be happy and stay well!
Austin & Lynn Goodale