Here are the updated national housing market trends—home prices, inventory, sales, and forecast. If you're wondering what the state of the housing market 2020 will be like over the next twelve months, especially if you're an investor, then here is some good news for you. Given the current fundamentals, real estate sales should remain strong in most U.S. houisng markets for the foreseeable future. The US housing market has begun to show signs of heating up as more buyers and sellers returned to the market in July.
Housing units are still in short supply with the problem getting worse. Unsold inventory sits at a near 4.0-month supply at the current sales pace. Buying activity slowed due to the pandemic but has significantly rebounded since June. The pent-up demand drove the home prices up 8.1 percent in July. In fact, in just the second quarter alone, the housing demand went from being down 41% to up 40% year-over-year. That's a quick and huge bounce back even seen before in the housing market.
Low mortgage rates, population growth, and an increase in buyer interest are further driving the demand for available housing. Earlier, in the first quarter, some economists had predicted that housing prices would fall in 2020 but such forecasts are losing grounds as the U.S. housing market, so far, remains undaunted by the economic recession.
Home prices rose during the pandemic and could rise even further due to heavy buyer competition and a significant shortage of supply. In July, the national median home price gain marked 101 straight months of year-over-year gains. According to Realtor.com, it has taken four months for the U.S. housing market to get back to the more normal pace of growth we saw before the COVID-19 pandemic.
How To Become A Landlord
A Phoenix home with 95 bids is just one example of a housing market entering a new and unprecedented phase. Experts at Arizona State University School of Business say Phoenix is headed for a major housing shortage.
Well, well, well… what an interesting year 2013 is shaping up to be!
A tax break that has long been untouchable could soon be in for some serious scrutiny. Many home buyers deduct their mortgage interest when assessing their tax bill, a perk that has helped bolster the income of millions of families – and the broader housing market. But as President Obama and Congress try to hash out a deal to reduce the budget deficit, the mortgage interest deduction will likely be part of the discussion.
