According to Lawrence Yun, the National Association of Realtors chief economist, a pent-up demand for homes should be a boon for most markets. “The housing market was exceptionally strong prior to the pandemic and before the massive job losses began. Another point was the strong growth in the savings rate. Social distancing meant no trips to the shopping mall, no eating in restaurants, no vacation travel, no baseball games . . . . but now with the gradual reopening of the economy consumers are ready to unleash much of those savings back into the economy.”
New listings and new home construction are urgently needed! Home buyers want to lock in record-low mortgage rates. They know that in five years or so, consumer prices could accelerate as a result of the government’s plan to print more money. Higher prices for food, tuition, health care, rents, and real estate are inevitable. The only major expenses holding steady are fixed-rate mortgage payments. And those will feel more manageable as incomes grow.
Home sales nationally are forecast to be down only 11% in 2020, while prices rise by 4%. In 2021, sales are expected to jump to 15% while price growth stays in the 4% to 6% range. The demand will be there; the real question is whether the houses will be!
Don’t be afraid to sell amid this pandemic. Safety measures are in place and many buyers are looking. If you have been thinking of a move, this is the perfect time!