- Low inventory: This trend has been increasing throughout the entire year of 2020. The number of properties for sale continues to decrease week-over-week, month-over-month, year-over-year. America has 37.5% fewer houses for sale on the market than it had around this time in 2019, despite 56% of people believing that now is a good time to sell (Fannie Mae). But 41% of people assume that housing will be more valuable in the near future than it is now, so many people are waiting to sell their homes until the market has matured more than already has.
- Decreasing homebuyer sentiment: The pandemic has left many people confused on what the future holds. 59% of people in September 2020 believed that the time was ripe to buy a home, yet only 54% of people believe that now in October. Why has this number decreased so sharply. According to Doug Duncan, Senior Vice President and Chief Economist of Fannie Mae, “Consumers’ home price expectations were up strongly this month, with high home prices playing an increasingly – though unsurprisingly – important role in driving both the increase in ‘good time to sell’ sentiment and the decline in ‘good time to buy’ sentiment." Another dynamic of the economy, credit card debt, has decreased significantly last month indicating that people are prioritizing debt reduction over debt addition, such as a mortgage; this also indicates that consumer spending is decreasing which tends to happen when people are quite uncertain about the future. So should you buy a home right now? Less and less people seem to think that is a good idea.
Real Estate Report: October 14, 2020
Richard Adiansingh
November 16, 2020
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