After so many recent events impacting the economy, all eyes are now on how the market fallout will unfold. While the pandemic won't go away immediately, the country can start looking ahead with a new sense of optimism. This is especially the case in the real estate market.
Though it may take time for the economy to recover, experts predict that house sales will rise compared to last year. And as more Americans look for a change in their lives, the strongest housing market in decades could arise.
Are you keen to determine how the US market will change in the first part of this year? Here is your real estate market forecast for the spring home sale season.
More People on the Move
As the country recovers from a challenging health crisis, many economists predict that the recession will cause property prices to rise.
This, however, is not going to stop buyers from achieving their housing dreams. You will likely see some of, if not the highest homeownership figures ever. As remote working heats up, you will also see many Americans move to cities with a lower cost of living.
If you’re asking: “should I sell my house as is?” now might be a good time to start thinking about it.
Favorable Mortgage Rates
This year, the retail estate market forecast suggests that mortgage rates will probably rise a little. But at the same time, they will likely stay at a reasonable level.
Any dramatic rise over the next couple of years is unlikely too. The Federal Reserve has already expressed its interest in keeping mortgage rates low for at least the near future. And while it can’t set rates itself, the central bank will likely have an indirect influence.
As National Association of Realtors Chief Economist Lawrence Yun says: “In the coming year, I think rates will be similar or modestly higher, maybe 3% or 3.5%. So mortgage rates will continue to be historically favorable.”
Building New Homes
As more Americans move to cities that better-match their lifestyle, homebuilding will also rise this spring. Permits for these have already grown in recent months, as has spending across the US.
Besides the big cities, there might also be a rise in home building in previously less desirable cities. Suppose prices increase in places like New York City, Phoenix, and Miami. In that case, homeowners may instead look to Buffalo, Tucson, and Orlando. And as demand grows in these areas, more construction companies will seek to take advantage.
But also keep in mind that with the Coronavirus pandemic, there is an urban flight to suburban and rural areas right now. Some suburban locations and most rural towns are less expensive and more open, so you get more for your dollar. And you'll enjoy less exposure to the Covid-19 virus. This trend should continue for at least the majority of the year, if not longer.
The Real Estate Market Forecast Is Positive
The retail estate market has already shown its resilience. More Americans moving will help the country to get back on its feet, as will low mortgage rates. If you've been wondering when to sell your home (or buy a new house depending on the location), now might be a good time.
If the real estate market forecast becomes a reality, Americans moving around will also boost local economies. If you live in a more popular city, you might choose to sell your own home for a good price.
Are you looking for more real estate market forecast tips? Check out more property management insights and home improvement articles in the Real Estate section of the Bootstrap Business Blog.
