Planning to Move in 2020?
If you’re planning to move in 2020, we have some good news for you! Red Door Real Estate has pulled data from some of the most trusted entities in the real estate industry when it comes to mortgage rates, home sales, and home prices to give you a better picture of what this could mean for us in Quincy, MA, Hanover MA and the South Shore Massachusetts. The results may surprise (and encourage) you!
Projections from the experts at the National Association of Realtors (NAR), the Mortgage Bankers Association (MBA), Fannie Mae, and Freddie Mac all forecast mortgage rates remaining stable throughout 2020:Rates have stayed under 5% for the last decade. This is an incredible opportunity that many have not fully appreciated. Take a look at the average mortgage interest rates over the last several decades:
- 1970s: 8.86%
- 1980s: 12.70%
- 1990s: 8.12%
- 2000s: 6.29%
The same expert groups noted above see an increase in home sales in 2020, and the fourth sees the number remaining stable:Keep in mind, the lack of available homes for sale, could moderate the increase in sales.
Below are the projections from six different expert entities that look closely at home values and home prices: CoreLogic, Fannie Mae, Ivy Zelman’s “Z Report”, the National Association of Realtors (NAR), Freddie Mac, and the Mortgage Bankers Association (MBA).Wow. Bet you didn’t see this one coming? Each group has home values continuing to improve through 2020, with four of them seeing price appreciation increasing even more rapidly than 2019.
Is a Recession Possible?
In early 2019, a large percentage of economists began predicting a recession may occur in 2020. 50% of home purchasers who were surveyed agreed it would occur this year. The economy, however, remained strong in the fourth quarter, and that has caused many to rethink the possibility.
Red Door Real Estate’s Final Take:
With mortgage rates projected to remain under 4%, a growing demand and a limited supply of inventory- prices will continue to appreciate. The threat of an impending recession seems to be softening. It looks like 2020 may be a solid year for the real estate market. If you want to buy or sell- do it NOW!
The Quincy, Ma real estate market continues to be strong, to view homes for sale in Quincy Ma click here.