Where Will Real Estate Be at the End of 2020? – Amid this crazy COVID-19 era, some things still must go on; real estate being one of them. The housing market is definitely wading into some uncharted territory and we’re seeing mortgage rates bounce up and down, canceled open houses, and a lot of chaos and uncertainty. So, where do we expect the real estate industry to be in the next 6 to 8 months?
One thing is for certain, that the spring homebuying season will definitely look different than it has in years past. So what should we expect going forward into the second quarter of 2020?
#1. Homebuying will definitely dip for spring.
There just won’t be that many homes on the market so homebuyers will hold off buying, although that’s not everybody. Some people will still need to buy and sell real estate so it’s even more important to have a good connection with your real estate agent so they understand what it is you might be looking for if you’re planning on buying.
#2. Home values should remain steady.
We don’t see home values dipping too much just because there will be a lack of inventory. This will keep home values up so long as this virus issue is somewhat short-lived. Once the lockdown is lifted, we should experience a dramatic spike in both buyers and sellers. Be prepared for multiple offer situations for those homes that are updated and priced right.
#3. Mortgage rates are likely to drop even further.
This is great news for homebuyers either currently in the mix or planning on buying a home in the next 6 to 8 months. Mortgage rates have been on a bit of a roller coaster lately, but if you’re planning on refinancing, it might be a good time to look into rates and where you can benefit. The Federal Reserve has employed quantitative easing by putting billions into the mortgage-backed securities market to ensure that mortgage rates stay low. Experts say that this should put mortgage rates back into balance helping buyers and sellers throughout the rest of the year. [Source]
#4. Digital technology will become even more important.
One blessing through all this is our connection with each other. If this happened 100 years ago, we definitely would be more isolated but in today’s society, technology is king. You could do just about everything online, over the phone, on through email. Even finalizing documents on a purchase and sale agreement can come down to just one notary coming to you to sign.
Buyers and sellers are using video technology to show houses, talk about issues, and using Google Street View to check out a neighborhood. Since open houses have been canceled, video tours and virtual tours are a seller’s best friend right now.
So, the real estate market will definitely go on even if we might have a little hiccup here or there. If you need to buy or sell real estate during this time, there are many ways to do it. Give me a call at 248-752-3088 and let’s talk through some of the issues you might be facing.