The State of the Housing Market
& What to Expect through 2020's End
Indicators of the current state of the housing market have been subject to conflicting variables as both unemployment levels and mandated shutdowns ebbed in Spring, began to wane in early summer, but now appear to be coming back again.
COVID-related job-losses and shutdowns put an end to what was shaping up to be “some of the best home sales and housing starts pace in more than a decade” from December 2019 to February 2020 according to Realtor.com
As a result, mortgage rates fell dramatically in mid-March from an average 4.6% to under 3.5% for fixed 30-year home loans in late-March and have continued to fall slowly according to Zillow Economic Research.
Depressed mortgage rates appeared to temporarily bump nationwide home sales in late March to early April, but larger economic setbacks soon brought home sales tumbling down.
Both home buyers and sellers became hamstrung by mixed market signals. Potential sellers sat on the sidelines while their house prices flatlined or even fell while would-be buyers saw lower home inventory and lower average incomes.
Forecast for Q3, Q4 of 2020
So what can real estate investors expect for the remainder of 2020? In short, it depends on many variables, including employment levels, home-inventory, buyer and seller confidence, and governments’ reactions to the recent wave of positive COVID cases.
The short-term uptick in housing market confidence in early Summer as COVID fears waned proved that potential home buyers and sellers are eager to get back to their namesakes.
However, in light of mounting positive cases, states and municipalities are returning to the mandated precautions of this past Spring, and employment levels are still far below pre-pandemic levels.
Danielle Hale, chief economist at Realtor.com predicts that low home inventory and stagnant prices will continue in July due to tougher qualifying criteria for buyers, while sellers should expect their homes to remain on the market for longer periods.
If reality meets expectations for lower positive cases in late-Summer, we should see many potential home sellers get back in the game. As sectors of the economy languish in the meantime, opportunistic investors looking for motivated sellers may find saving grace among homeowners struggling to make mortgage payments.
We at Datazapp strongly encourage smart Real Estate Investors to press on with their marketing campaigns while other REI’s sit on sidelines! These times are uncertain but there are still plenty of good leads to generate for your home seller pipeline and stay ahead in this game!
Pivot your marketing efforts towards cost-effective channels like telemarketing and Email, rather than costly physical mailpieces. Use our phone, cell, and Email append services to enhance your lead lists with the contact info you need.
Also, consider using Datazapp’s property list-building module with your choice of phone, cell or email to target property owners in your areas. We may also have motivated sellers such as Absentee property owners, Vacant owners or distressed homeowners available for your area.
Analysis of national real estate data suggests that as soon as people begin to feel safer we will see a sharp jump in home buying and selling activity!