Our Regional real estate market had a strong finish to the year – and activity at Open Houses has launched a brisk start to 2020!
A recent survey by the National Association for Business Economics found that experts believe the U.S. economy will remain positive throughout 2020, with the forecast of a recession minimal. Unemployment is at a 50 year record low, the stock market is at a 9 year high and locally, red tide has disappeared.
HOME PRICES WILL CONTINUE TO RISE
Economists predict housing prices will continue to rise. In addition, forecasters predict a faster rate of growth for home prices in 2020 than we saw in 2019, with prices anticipated to rise by 3.6% from 2019.
“Real estate is on firm ground with little chance of price declines,” said National Association of Realtors Chief Economist Lawrence Yun. “However, in order for the market to be healthier, more supply is needed to assure home prices as well as rents do not consistently outgrow income gains.”5
What does this mean for you? If you have the ability and desire to buy a home now, don’t let a fear of recession or falling prices hold you in limbo. Economists expect home values, as well as rent prices, to continue rising. So you’ll likely pay more the longer you wait.
MORTGAGE RATES WILL REMAIN LOW
Mortgage rates have declined more than a full percentage point since November 2018, when they hit a recent peak of 4.94%. The Mortgage Bankers Association predicts rates will remain low, at around 3.7%, through mid-2021
While it may not seem significant, on a $200,000 30-year fixed-rate mortgage, this lower rate means buyers could save around $145 on their monthly payment and more than $52,000 over the life of their mortgage.
What does it mean for you? If you’re looking to buy a home, act soon to lock in a historically low mortgage rate. It will minimize your monthly payment and could save you a bundle over the long term. And if you plan to stay in your current home for a while, consider whether it makes sense to refinance your mortgage at today’s lower rates. We work a many fantastic lenders, who can give you a no obligation analyst if you are considering re-financing!
HERE TO GUIDE YOU
As a local market expert, I can guide you through the ins and outs of our market here in Sarasota.
If you’re considering buying or selling a home in 2020, contact me to schedule a free consultation at 941-544-7690 or email shayla@sarasotarealestatesold.com
