Home prices are projected to continue rising through the middle of 2020. What does this mean for the real estate market? How can you take advantage as a buyer and as a seller?
Home Prices to Continue to Rise Through 2020
According to numbers published in the Florida Online Realtor Magazine and released by CoreLogic (a major nation wide real estate data firm), home prices should continue to rise until at least July 2020. The rhyme and reason as to why July 2020 remains somewhat a mystery. One theory is that July of 2020 is how far out the model projects.
What I can tell you is that the projection is in part based on the fact that family incomes are on the rise. The nationwide real estate market is also experiencing the lowest mortgage rates that we’ve seen in 3 years. Older millennials continue to purchase homes. Lastly, we must remember that there is an election year approaching quickly. The powers behind the scenes want to make sure the electorates are happy, so there will be a favorable economic climate for sure.
There is no doubt that we need home prices to increase. There are still a lot of homeowners who would like to sell but are underwater. This means the value of their home has not increased from when they bought their home. This is especially true if they bought their home during 2005, 2006, or 2007. With the number of homeowners still owing more on their mortgages than what their home is worth, this in itself causes a shortage of homes for sale. In a normal selling cycle, homeowners would be able to sell their home within 5.6 years without losing money. Now homeowners must wait an average of 8.2 years before they are able to at least break even when they sell their home. Let that sink in!
I am here to assist you with all of your home buying and selling questions and needs. Until next time, this is Gitta!
