Real Estate Rundown November 2019
November 07, 2019
2019 is almost over and low supply and high demand continue to drive up prices. Prices have steadily increased, people are staying in homes longer, the luxury market is stabilizing, and mortgage rates are low. Will the bubble pop in 2020 or will we continue to see more of the same? See predictions from the experts.
What comes up must come down. The US has experienced an economic expansion considered the second-largest in American history. An increasing number of buyers and low inventory has contributed to price spikes over the past decade. If a new real estate recession emerges in 2020, how will it impact real estate markets, investors, buyers, sellers, and movers?
Believe it or not, it’s November and 2020 is only a few weeks away. Market experts are predicting that the US housing market will stay on solid ground in 2020 with a slight increase in home sales, similar inventory challenges, no major mortgage rate increases, and slowly rising home prices.
Redfin tracks luxury home sales in over a thousand cities across the US. The third quarter of 2019 was the first time that the luxury prices did not drop after three straight quarters of declines. Remember—when marketing to high-end homeowners, the time on market is typically longer so remarketing with a second postcard after 90 days is key.
Recent trends show homeowners staying in their current homes for longer, decreasing the average number of moves, and limiting the number of homes available for new buyers. High prices seem to be the culprit; homeowners who bought when prices bottomed out in 2012 are more reluctant to sell and buy a new home. With fewer homes on the market, supply and demand push prices up even further. It's vital for movers to know when a homeowner finally lists their home so they can put themselves in the running to win their business.
The 2019 housing market started out weak but gained momentum during the summer before falling back in September. Dropping mortgage rates aren’t boosting the housing market as some experts expected as homeowners are still struggling to afford expensive homes. Marketing to all potential leads when inventory is low is key for movers.
The national inventory of homes fell 2.5 percent in September. Homebuyers have had to face tight inventory and a competitive market in 2019. Declining mortgage rates and the arrival of fall promised a reprieve but the high demand remains strong. Low inventory makes it even more important for movers to market to 100 percent of leads in their area.