Market Update 🏡 | November 2020

Market Update 🏡 | NOV 2020

How does what’s happening in the economy have an impact on the real estate state market? Lots of talk around that. And obviously one would think that with all the craziness, something’s got to give.

Well, I completely understand your concern because it’s valid. It’s very valid, lots of talk around it, and it can be very scary. Some people, because they have to sell, they don’t have a choice because of a job transfer or a loss, but some may just be wondering if they should hold on and see if the market goes up and they can get a better return on their investment. And others may feel like they just want to sell now so they can keep all the equity in case the market goes down.

There’s certain factors and variables that can cause housing markets to go down, both here in Tacoma 98407 and 98406 and nationally. The factors can also have a positive or negative effect on the housing market as well.

Hi, I’m Anne Curry with Anne Curry Homes and Better Properties. Unemployment is the contributing factor and it was lower pre-pandemic and then spiked to pretty high from April to July, hovering between 8% and 14%. But it’s been coming down month after month since April, which is a positive sign. Obviously we’re hoping that it keeps coming down, and experts are projecting that it will continue to drop. There’ve been several recessions in the US throughout the history, and if you look historically at times during recessions where the number of months that unemployment was greater or equal to 9%, the recession of 2020 has been the lowest. It puts unemployment perspective where we are right now, nowhere near where it was in the past.

So you take the great depression that had 108 months. The great recession had 30 months, and the 1980s oil recession had 19 months. And here we are in 2020, we’ve had only four months where the unemployment rate was greater or equal to 9%. Also, the number of people in active do forbearance is decreasing. It’s continued to go down since May. So many people are paying their mortgages and they’re getting their jobs back.

Many people are wondering what will happen due to the election. Well, I recommend looking at a few factors. Inventory is one of them. Back in 2008, the levels of inventory were fairly high, putting us into a buyer’s market. Home prices were depreciating because there was so much supply. And today, inventory levels are very, very low, showing that it’s a seller’s market and prices are going up because buyers are paying more to secure the homes that are available.

So right now, the percentage of equity that homeowners has is very strong. John Burns consulting tells us that 42.1% of the homes owned in the country are owned free and clear. That means they have no mortgage. And that 90% of homes have at least 10% equity, which indicates that less homes will go into foreclosure, due to the equity that they have. So there’s a lot of data that points to a positive forecast for the housing market in the future.

Now, every seller has their own situation, and I want you to feel free to reach out to us for a no risk and no hassle strategy session. We’re just going to get to talk about your situation and what the housing market can mean to you. I look forward to hearing from you.
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