Norada Real Estate Investments

US Housing Market Forecast 2020 & 2021: Crash is Coming?

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Here are the updated housing market trends & predictions for 2020 & 2021. The housing market is not only doing well but it also remains highly supportive of the economic recovery of the country. It remains a hot seller's real estate market, with annual price growth reaching record highs and inventory continuing to fall. New home sales have risen strongly during the pandemic and existing home sales are at a 1-year high.

As prices keep climbing, it just shows the resilience of the US housing market in the face of an ongoing economic disaster. Record-low mortgage rates and shortage of inventory has kept the US housing market strong with respect to buyer demand. Strong housing demand pushed by the pandemic is driving prices insane.

As was expected, home buying and selling prospects drastically improved in September 2020 from pandemic lows. 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.

Homes are being sold at an increasingly fast pace when compared to the previous year. Housing prices have surged to new records due to very strong demand but low mortgage rates are helping buyers offset this increased cost. Mortgage rates for housing are anticipated to stay at near 3% over the next 18 months which will make homes more affordable.

The housing sales and prices have stayed strong through the summer months amid increasingly short inventory and high demand. This strong buyer activity points to a fall housing market that is more active than normal, where buyers may face more competition and may have to act more quickly than usual to snag their dream home.

The national median asking price on Realtor.com in September 2020 was $350,000, up 11.1% compared to last year. Prices could rise even further due to heavy buyer competition and a significant shortage of supply. Housing inventory continues to be constrained by stronger than normal buyer demand and little new inventory coming on to the market.

These new properties are quickly taken out of the market from heavy buyer competition. The national bousing market inventory has declined by 39.0% year-over-year, and the count of newly listed properties for sale in September also decreased by 13.8% since last year. Therefore, housing units are still in short supply with unsold inventory sitting at a 3.0-month supply at the current sales pace.

It is down from 3.1 months in July and down from the 4.0-month figure recorded in August 2019. This figure is a sign of a strong seller's real estate market. The improved selling prospects are a good sign and will need to remain on that path to bring more homes into the market.

Housing Market 2020

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8 Tips To Becoming A Successful Landlord

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How To Become A LandlordHow To Become A Landlord

The ultimate goal of investing in rental property is to turn a profit.  To ensure that you achieve that goal it is essential that you follow several critical guidelines. Most of us dream of becoming a landlord but it an easy or a difficult job? Before you start searching for a home to rent, you should think about the responsibility that comes with being a landlord to your tenants. If you’re interested in investing in real estate, the single-family rental market might be a good option. Being a landlord can be a profitable venture that provides a steady income stream while your property appreciates in value. You might also be able to enjoy certain tax advantages while you build equity in the home.

Here are 8 valuable tips for becoming a successful landlord and start a rental property business.

1. Screen Your Tenants

First, always make sure that you check tenant references. This is the first step of becoming a successful landlord. This can be a burdensome step and many landlords overlook it because they feel as though they have good instinct when they meet with the tenant.  But not checking references can lead to a number of problems later on.  You will uncover a wealth of information about potential problems before you rent to a prospective tenant. It’s also worth the time to do a background and credit check on all potential tenants. There are several online tenant-screening services available, and you should be sure to check potential tenants’ credit scores. You should also conduct an interview to make sure you’re comfortable interacting with them, and check references, especially from employers or past landlords.

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National Economic Outlook (September 2013)

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The rate of annual job growth in August, 1.7 percent, was basically the same as in previous months. We had better get used to the idea that this is the new normal, because there probably won't be much help from the lagging government and construction sectors.

Budget difficulties will prevent any meaningful increase in government spending, even though local and state revenues are now in better shape. The recession revealed the extent of unfunded pension liabilities for public employees, which will absorb any extra dollars.

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National Economic Outlook (August 2013)

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The pace of job growth in July was unchanged from the 1.7 percent annual rate of previous months, but the details suggest an economy that will do modestly better for the rest of the year. Most importantly, jobs in business services were up 3.5 percent from last year.

Business services is one of the largest sectors of the economy, on a par with health care and government, and bigger than retail or manufacturing. Earlier this year it was growing at a 3 percent rate, in the last few months around 3.5 percent; it seems only a small increase but it means that businesses are expanding again.

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National Economic Outlook (June 2013)

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The economic recession only lasted a year, but there wasn't a recovery for homes because prices had climbed much too high and builders had built way too many of them. Prices had to fall, not just back to a “normal” level, but to an even lower level so that the large inventory of excess homes could be moved – a sort of clearance sale. We're not yet done with that sale – see the large number of mortgages still delinquent – but enough has been cleared out so that prices can drift up to a more normal level.

 

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Norada Real Estate Investments 30251 Golden Lantern, Suite E-261 Laguna Niguel, CA 92677

(949) 218-6668
(800) 611-3060