What’s to Come in the Rest of 2020?
One popular question we have been asked is “What is going to happen in the real estate market in the rest of 2020?” Based on recent unemployment rates, the economy, and more, it is understandable why this question is on everyone’s minds. Even though these numbers are fluctuating daily, economists are revising their forecasts for the remainder of 2020 with a much more encouraging outlook.
Here are what experts are saying:
“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% decline in purchase originations in 2020. Now, we think there will be 2% growth this year.” -Joel Kan, Associate Vice President of Economic and Industry Forecasting, Mortgage Bankers Association
“Sales completed in May reflect contract signings in March-April. During the strictest times of the pandemic lockdown and hence the critical low-point. Home sales will surely rise in the upcoming months with the economy continuing to reopen and could even surpass one-year-ago figures in the second half of the year.” -Lawrence Yun, Chief Economist, National Association of Realtors
“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.” -Freddie Mac
“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.” – George Ratiu, Senior Economist, realtor.com
Real estate experts are optimistic about the back half of the year. If you paused your real estate plans this Spring, now is the time to reach to your Ask Cathy agent to determine how to re-engage in the process.
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