THE 2020 REAL ESTATE PROJECTIONS
MAY SURPRISE YOU!
This will be an interesting year for residential real estate. With a presidential election taking place this fall and talk of a possible recession occurring before the end of the year, predicting what will happen in the 2020 U.S. housing market can be challenging. As a result, taking a look at the combined projections from the most trusted entities in the industry when it comes to mortgage rates, home sales, and home prices is incredibly valuable – and they may surprise you.
Projections from the experts at the National Association of Realtors (NAR), the Mortgage Bankers Association (MBA), Fannie Mae, and Freddie Mac all forecast mortgage rates remaining stable throughout 2020:
Since rates have remained under 5% for the last decade, we may not fully realize the opportunity we have right now.
Here are the average mortgage interest rates over the last several decades:
- 1970s: 8.86%
- 1980s: 12.70%
- 1990s: 8.12%
- 2000s: 6.29%
Three of the four expert groups noted above also predict an increase in home sales in 2020, and the fourth sees the transaction number remaining stable:
With mortgage rates remaining near all-time lows, demand should not be a challenge. The lack of available inventory, however, may moderate the increase in sales.
Below are the projections from six different expert entities that look closely at home values: CoreLogic, Fannie Mae, Ivy Zelman’s “Z Report”, the National Association of Realtors (NAR), Freddie Mac, and the Mortgage Bankers Association (MBA).Each group has home values continuing to improve through 2020, with four of them seeing price appreciation increasing at a greater pace than it did in 2019.
Is a Recession Possible?
In early 2019, a large percentage of economists began predicting a recession may occur in 2020. In addition, a recent survey of potential home purchasers showed that over 50% agreed it would occur this year. The economy, however, remained strong in the fourth quarter, and that has caused many to rethink the possibility.
For example, Goldman Sachs, in their 2020 U.S. Outlook, explained:
“Markets sounded the recession alarm this year, and the average forecaster now sees a 33% chance of recession over the next year. In contrast, our new recession model suggests just a 20% probability. Despite the record age of the expansion, the usual late-cycle problems—inflationary overheating and financial imbalances—do not look threatening.”
Mortgage rates are projected to remain under 4%, causing sales to increase in 2020. With growing demand and a limited supply of inventory, prices will continue to appreciate, while the threat of an impending recession seems to be softening. It looks like 2020 may be a solid year for the real estate market.
STORY CREDIT TO>https://www.keepingcurrentmatters.com/2020/01/02/the-2020-real-estate-projections-that-may-surprise-you/
December 17, 2019
Want to make a huge difference in a local child’s life? A Donation to Holiday with a Hero is a sincere, heartfelt way to put a smile on a young face this Christmas.
“Each donation truly makes a miracle happen for one of our county’s children,” says Holiday with a Hero program organizer Terra Avilla who urges everyone to, “Be a miracle”.
And she truly means just that. Every single dollar contributed to the organization goes directly to the kids, making Holiday with a Hero one of Lassen County’s most powerful forces for good.
“Through community donations our program works to provide not only a holiday shopping spree for the children but a once in a lifetime experience and memories they will never forget,” explains Avilla.
How you can make a difference
Holiday with a Hero is a terrific opportunity to help our local kids in need with 100% of your donation going directly to the child’s shopping spree which will be held December 21st from 7:00 to 9:00.
You can drop off cash, gift cards or checks at the Susanville Fire Department, 1505 Main Street. Please make checks out to Holiday with a Hero.
Article courtesy of SusanvilleStuff.com
December 10th, 2019
Lassen Municipal Utility District has announced that beginning today customers are invited to bring a non-perishable food item to the utility’s business office at 65 South Roop Street in exchange for a 100-bulb string of multi-colored LED holiday lights.
The goal of ‘Food for Lights’ giveaway program is to increase awareness and promote the use of LED lights in LMUD’s service territory and to help replenish our local food shelves after the holiday rush.
Lights will be distributed to LMUD customers on a first come, first served basis until supply lasts. The giveaway is limited to one box per household for the first 450 customers to bring in food items.
In addition to the light give-away, LMUD is offering a rebate of up to $3 per box to customers who purchase EnergyStar qualified LED holiday lights. Check the LMUD web site for program details and to download a rebate application.
Questions? Contact LMUD’s Public Relations Manager at 257-4174. To learn more about how LED’s can reduce your holiday energy use visit energystar.gov.
Article courtesy of SusanvilleStuff.com