Market Watch – February 2020
Rebecca goes over how the market is doing currently in Febuary of 2020.
Rebecca Zimmerman, Team Zimmerman, Adams, Cameron & Company Realtors – here for your February market watch.
So it’s an interesting time in the housing market right now. We have a presidential election coming up and we also have the thoughts of a recession which I’m going to talk about here.
So projections for 2020 have been a little interesting. What I have to report to you today I think will be a pleasant surprise. So let’s dig right in. We’re going to talk about mortgage rates, we’re going to talk about housing prices and we’re also going to talk about sales.
So let’s start with mortgage rates. Projections from experts at the National Association of Realtors, The Mortgage Bankers Association, Fannie Mae and Freddie Mac all forecast mortgage rates to remain stable through 2020. As you can see here, we are currently at 3.7%, which is outstanding.
The interest rates are low. If you are interested in locking in on this low interest rate right now, whether it be a re-finance or buying your first home or buying your dream home, selling your home and buying a dream home, or downsizing on to something that’s a little bit smaller… now is a really good time to take advantage of these low interest rates. Give us a ring. We have some really good mortgage brokers in the industry that we work with closely that could help you out with that.
Speaking of interest rates, for the last decade, we have been below 5%.
So let’s talk about why is this such a great thing right now. Compared to the last decade, interest rates. Let’s do a little review here. Interest rates in the 70s were 8.86%. The 80s were at 12.7%. The 90s were at 8.12% and the 2000’s average around 6.29%. So as you can see, we are historically low in our interest rates right now, so it’s great news.
Let’s also talk about home sales. Here are some numbers for our home sales. Three of the four expert groups noted here predict an increase in home sales in 2020 and the fourth sees transactions remaining stable. Great news, of course!
Home prices. Here are some projections for home prices. Projections from six different expert entities that look closely at home values which are: CoreLogic, Fannie Mae, Zelman’s Z report, The National Association of Realtors, Freddie Mac and The Mortgage Bankers Association. Each group has values continuing to improve through 2020, with four of them seeing price appreciation increasing greater than it did in 2019. Also great news!
So is the recession coming? A lot of market experts have been projecting that we’re going to see — They projected in 2019 that we would see a recession in 2020, so much so that they did a survey and the results from that survey were a prediction of a 50% chance that we were going to have a recession in 2020.
Well, last month I did a projection and showed you some slides that have those projections down to 34.2%. So now, I’m here today in February to report that many market experts are rethinking the possibility of a recession in 2020.
For example, Goldman and Sachs in their 2020 US Outlook explain: “Markets sounded the recession alarm this year and the average forecast now sees a 33% chance of a recession over the next year. In contrast, our new recession models suggest just a 20% probability of a recession in 2020”. More great news!
So what I have today to offer you these all the great news about the stability of our housing market, and moving forward in 2020. What does that mean? That means that interest rates are continuing to stay low under 4%, housing prices continue to grow, sales continue to grow, we’re in a healthy market and if you’re interested in buying or selling or upgrading or downsizing, this is a really good time to do it.
Looking forward to working with you. If you have any other questions about the market or real estate, we’re here to help and we’re kicking off 2020 with a great year! Talk to you next month.
Market Watch – January 2020
Watch as Rebecca gives you the latest update on what’s going on in the market and help you be in the know for the new year!
Rebecca Zimmerman here, Team Zimmerman of Adams, Cameron Company of realtors. I’m here for our market watch. Happy new year, January 2020. I’m here to talk about the recession. Yes, the recession again. We are going to continue to talk about the recession probably until after the elections. Because it is in the news and I’m going to discuss that. So, projections for is the recession gonna be here 2020 has gone down. So, that’s good news, it’s gone down to 34.2%.
Last month’s slide showed you that, the projections were at 50 % that they were talking about. That we were going to feel the effects of recession. 2020 at 50 % of the economy was talking about that it was going to happen. So, now the projections down to 34.2%.
Goldman Sachs says that, “US growth is improving, interest rates are low. Building activity is also below demands which is equal and a healthy markets and continuing growth.” So, that’s good. If you are looking for deals and the recession to come, you better odds switch your plan. Because it doesn’t look like there’s going to be a huge impact and our housing market from a recession anytime soon.
Another great thing is buying purchasing power has gone out. Wages are up and mortgage rates are low which allow individuals to have a better buying power in our markets. So, if you’re looking for first time home buyer, you’re gonna be able to qualify more on purchasing your first home. If you’re looking to upgrade into your dream home, you’re gonna be able to make that move quicker than you probably thought. As we’re talking about purchasing power, I want to touch on investments.
Investments, there’s a recent survey done US housing is up with the confidence to 27.2% confidence and investing in real state. That it’s over gold stocks and bonds. So, the good old trusty U. S. housing is always a good investment. As we’re talking about investments, let’s touch a little bit on what rentals are going for. 2012, the average rental was about $1300 and we are off with our 2019 ending the year at $1600 per average rental.
So, we’re up $300 on if you own an investment and you’re renting the property. So, rentals are up and it’s a great investment right now. We’re ending up the year of course and we’re rolling into 2020, it’s always a slow time of the year inventory is low. So, expect to see some new inventory on the market new listings. If you’re looking to purchase, if you’re looking to upgrade with buying power or looking to invest look for those new listings that are coming out.
If you have any questions about real estate, if you have any questions about the markets about interest rates reach out to us. We’re here to help in any way. Have a wonderful day and see you next month.
Market Watch – November 2019
Recession? Rebecca Zimmerman covers the details of the upcoming “recession”.