Marco Santarelli, Author at Norada Real Estate Investments

US Housing Market Forecast 2020 & 2021: Crash or Boom?

September 15, 2020 by Marco Santarelli

Here are the updated housing market trends & predictions for 2020 & 2021. Home buying and selling prospects drastically improved in August as economic concerns continued to ease for both buyers and sellers. Significant uncertainty remains for the housing market going into the fall, as the economy faces a long and bumpy recovery in the upcoming months. Nonetheless, real estate is still a hot seller's market and improved selling prospects are a good sign and will need to remain on that path to bring more homes into the market.

Record-low mortgage rates and shortage of inventory has kept the US housing market strong with respect to buyer demand. With unusually high buyer interest this late in the homebuying season, buyers are moving much faster than this time last year to beat out competition and lock in low mortgage rates. The national median listing price on Realtor.com was $350,000, up 10.1 percent year-over-year while prices rose 8.9 percent in larger markets. While rising prices are making sellers rejoice and list more & more homes, the buyers are worried as home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply.

The new listings are quickly taken out of the market from heavy buyer competition. Therefore, housing units are still in short supply with unsold inventory sitting at a 3.1-month supply at the current sales pace, down from 3.9 months in June and down from the 4.2-month figure recorded in July 2019. This figure is a sign of a strong seller's real estate market. The national inventory has declined by 36.4 percent year-over-year, and inventory in large real estate markets has decreased by 38.1 percent in August.

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Dallas Real Estate Market 2020 Overview

September 14, 2020 by Marco Santarelli

The Dallas housing market has recovered from the impact of the Coronavirus pandemic. The real estate sales showed signs of recovery in July. The number of homes sold within Dallas County has shown a double-digit increase of 20.7% as compared to last year. The median price also increased by 15.3% to $282,500. There's about a 2.7-months supply of homes for sale in Dallas County, which is well below what’s considered to be a balanced real estate market. From this standpoint, the Dallas real estate market still favors sellers over buyers.

The Metro Dallas houisng market also faces a shortage of available homes with just 2.5 months of supply. The demand and sales have been climbing at a feverish pace in the Dallas real estate market for more than two years now. The market started cooling off in the last quarter of 2019 but it is beginning to heat up now. The latest housing data by Realtor.com shows that in August 2020 the Dallas housing market was a seller’s market, which means there are roughly more buyers than there are active homes for sale.

The median list price of homes on their platform was $400K in August 2020, flat year-over-year. The median listing price per square foot was $214. On average, homes in Dallas, TX sell after 58 days on the market. The trend for median days on market in Dallas, TX has gone down since last month, and slightly down since last year.

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Colorado Springs Real Estate Market & Investment Overview 2020

September 11, 2020 by Marco Santarelli

The Colorado Springs housing market continues to break all the records even when the COVID pandemic has not ended. The real estate market has reached record high prices with a lack of homes for sale. The Colorado Springs real estate market is facing a severe lack of inventory, with 50% fewer homes available for sale than at this same time last year. It is a hot seller's real estate market. As of August 2020, the “Months Supply of Inventory” is 0.8, down by 55% from last year.

In August, home sales in El Paso county increased by 13.3% while new listing dropped by – 9.6% year over year. The median sales price has reached a new peak of $380,000, which is + 15.2% higher than last year. Total available properties for sale have shrunk by – 53.5% year over year which amounts to 0.8 months of supply. The latest monthly data by the Realtor.com shows that homes in Colorado Springs sell faster than average compared to other cities in El Paso County. It takes an average of 38 days on market for a home to sell in Colorado Springs.

The median list price of homes in Colorado Springs on their platform is $350,000, trending up 9.4% year-over-year. The median listing price per square foot was $157. The median sale price was $337.5K. Ideally, a buyer would prefer a sale to asking price ratio that’s closer to 90%. The sellers in Colorado Springs have managed to hold good leverage in these negotiations in the past month. On average, they could sell homes for 100% of the asking price. A seller would always prefer scenarios that can yield a ratio of 100% or higher. The detailed analysis for the Colorado Springs real estate market (single-family homes) from April to date is given below.

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Denver Real Estate Market & Investment Overview 2020

September 10, 2020 by Marco Santarelli

The Metro Denver housing market has broken all the records despite the ongoing pandemic. There was a record number of homes sold in the month of August as compared to this month in previous years. July 2020 had hit a record high number of home sales in any given month in the Metro Denver real estate market. As compared to July, home sales dropped by 13% in August. However, home sales increased by 12% year-over-year, as reported by REcolorado®.

Several key housing indicators showed year-over-year gains as more buyers entered the market in August. The factors driving prices up are an increase in demand for housing, tight inventory, and record-low mortgage rates. The average price of a home in the Denver metro area in August was $539,252, a year-over-year increase of 11%. As compared to July, prices saw a marginal increase. Home price increases were driven by Single-family residences, which sold for an average price of $602,191, a 13% year-over-year increase.

This is the first time prices for single-family homes have surpassed $600,000. Despite the effects of COVID-19, Denver and the entire metro area remains a seller’s real estate market, especially in the $300,000 to $399,000 price range where it's getting even more difficult for buyers to compete. New listings in August were 5.88% lower than this time last year where year-to-date new listings are down by 9.85%. The closed to list price ratio for all residential properties in this segment was 100,74%.

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Naples Real Estate Market & Investment Overview 2020

September 8, 2020 by Marco Santarelli

We’ll be discussing the latest Naples real estate market trends & statistics to find out how they can affect the investors and homebuyers in the next six to twelve months. The Naples real estate market has been extremely resilient to the impact of the coronavirus pandemic. Buyers have less negotiating power because inventory in the Naples area continues to decline. It experienced a heightened homebuying interest in July, which resulted in a 57.3 percent increase in pending sales for the month. Total sales (closed) during July increased 35.4 percent year over year.

That's up 42% compared to the month before, according to NABOR®. A decreasing supply of inventory is making it difficult to keep up with strong pent up demand from buyers. Data by Realtor.com also corroborates that in July 2020, the Naples housing market was a seller’s market, which means there were roughly more buyers than there were active homes for sale. The sellers in Naples have managed to hold good leverage in price negotiations.

On average, they could sell homes for 96.25% of the listing price–just 3.75% below asking price. A seller would always prefer scenarios that can yield a ratio of 100% or higher while a buyer would prefer a sale to asking price ratio that’s closer to 90%. The median list price of homes in Naples, FL was $382.5K, trending up 5.7% year-over-year while the median sale price was $359K. More insights into the Naples housing market from NABOR 2020 Market Reports are given below.