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 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."
Home Sales: 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 lock down 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.”
Inventory: 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 historical trend for the September through December time frame."
Mortgage Rates: Freddie Mac
“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.”
New Construction: Doug Duncan, Chief Economist, Fannie Mae
“The weaker-than-expected single-family starts number may be a matter of timing, as single-family permits jumped by a stronger 11.9 percent. In addition, the number of authorized single-family units not yet started rose 5.4 percent to the second-highest level since 2008. This suggests that a significant acceleration in new construction will likely occur.”
The experts are optimistic about the second half of the year. If you paused your 2020 real estate plans this spring, and now you're ready to get moving, connect with us today. We're here Helping Others Make Moves.
HOMM Real Estate Services, located in the Brandon, Florida area of Tampa-Bay focused to Hillsborough, Pasco and Polk Counties. As a full-service general real estate company, we specialize in general real estate, home buyers, home sellers, new home construction, rentals, tenants and landlords and property management. Learn more about Marie Negron, her team and HOMM Real Estate Services. Call 813-684-5954 or email firstname.lastname@example.org to get started.
Homeownership is the goal most Americans strive for. Real estate is a solid long-term investment and buying your home is synonymous with the American Dream. Owning your own home means you can do exactly what you want, from painting the walls purple to remodeling the kitchen to have a built-in espresso counter. While this sounds like the ideal situation, the reality is that there are pros and cons to buying a house, just as pros and cons to renting. Understanding both fully can help you make the best decision for your goals.
There are two key factors to consider when it comes to deciding between buying and renting: finances and lifestyle.
When it comes to buying, as mentioned above, real estate is a positive long-term investment and can be crucial in wealth-building. It’s hard to imagine your home in the context of your financial portfolio, but a house is an asset that should appreciate over time.
Something to keep in mind though is that the cost of your house will extend past your mortgage. Upkeep of a home is crucial in maintaining its value, and if done correctly and consistently, it can lead to increased equity. Unexpected problems can become expensive if you are unprepared.
On the flipside with renting, your landlord is, typically, in charge of maintaining the property. Therefore, you won’t have to shell out money every time something comes up. That being said, you are up to the whims and timeline of the property owner if something like a dishwasher should break. With homeownership, your mortgage will stay consistent. Whereas with rentals, the owner can raise rent prices or even sell the place, thus leaving you without a home.
There is a specific sense of pride one gets in owning a home. Controlling the design and function of your own living space has its own sense of satisfaction. When you decide to make changes, you get to choose every little thing that goes into your home making it 100% to your tastes. There is also a sense of pride in the place you live as a permanent member of the community. Regardless of whether you have children, there is a natural desire to be part of a community; to have a local coffee shop, dry cleaners, bar and to be an active member in your neighborhood. Homeownership gives you roots that you don’t necessarily get with renting.
If roots sound more restricting than comforting, renting might be for you. A renter can move from one city or state to another very easily which allows you to move when you need/want to. Especially if your career is currently in the works or you’re not quite sure where to settle down yet, renting might be your best bet.
Deciding between buying and renting ultimately comes down to what best fits your lifestyle. Before you decide that it’s time to buy, give some thought to your lifestyle and goals. If they are in line with the advantages of homeownership, then time to go house hunting. If not, look into rentals. No matter what you choose, HOMM Real Estate Services has got you covered. Our full-service real estate agency provides resources for both buying and renting. Even if you decide to rent for now, but have your eyes on buying in the future, we are happy to help you make the jump. If you think you’re interested in owning property to then rent out, we have full property management services too. We’re here for you every step of the way.
For homes for rent or for sale check out https://www.hommsales.com/OurListings.