June 9, 2020
All Real Estate News
The good news is that economists are pushing back the timetable of the predicted recession. Below is one of the latest reports from the Wall Street Journal surveying economists on when they think the next recession will occur.
As noted in previous Monthly Market Reports, you can see the 2020 number is down from almost 50% to 34.2%.
We are reasonably confident that U.S. growth is improving… the sharp drop in mortgage rates has reinvigorated the housing recovery after a slowdown in 2018 and early 2019. The structural outlook is also strong, as a level of building activity remains well below demographic demand.
Goldman Sachs
Demand is still greater than the supply.
Amidst concerns of recession, it’s promising to see the housing market responding to the impact of mortgage rate decreases and other positive moves in the market. If housing continues showing the promise of growth, or even a leveling off, this activity has the potential to stimulate the larger economy.
Chief Operating Officer of BuildFax
See the chart below of the National Association of Realtors showing the percentage of income needed to purchase a median priced home by a median salary family.
The percentage the average family pays for a home is decreasing, despite home prices being up 5.7% last year. In that period, interest rates decreased 0.85%, increasing buying power $42,000. In addition, wages increased to push buying power up another $5,600. So, although home prices decreased, buying power by $21,300, overall buying power is up $24,500 ($40,200 + $5,600 – $21,300). Despite prices creeping up, low interest rates and increasing wages allow more people to purchase more of a home.
See the chart below where more Americans are choosing real estate as the safer investment, according to Porch.com.
Many sellers are considering selling For Sale By Owner (FSBO). About 8%-11% of all homes are sold FSBO, but, keep in mind, that costs you time and money. What are some other reasons not to sell FSBO?
So… what’s going on in Tallahassee?
657 NEW LISTINGS |
$218,291 AVERAGE SOLD LIST PRICE |
$229,264 AVERAGE UNSOLD LIST PRICE |
---|---|---|
563 SOLD |
$211,723 AVERAGE SOLD PRICE |
78 AVERAGE DAYS ON MARKET |
PERCENTAGE LISTINGS SOLD |
% SALES PRICE TO LISTING PRICE |
PERCENTAGE HOMES EXPIRED |
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