Let’s start at the end, or “bottom line” as Keeping Current Matters (KCM) calls it in their blog. In the sites recent post, “Real Estate Is Soaring, But Not Like 2008,” from March 4, 2020 they state:
“The year has started off very nicely for the residential housing market. If you’re thinking of buying or selling, now may be the time to meet with a real estate professional to discuss your options.”
Where does the confidence in the current housing market come from? Their post lays these details out perfectly, using the following stats:
- Buying demand is strong. ShowingTime’s Showing Index highlighted a 20.2% increase in purchaser traffic across the country year-over-year.
- The National Association of Realtors’ (NAR) most recent Existing Home Sales Report revealed that closed sales increased 9.6% from a year ago.
- This activity has lead Zelman & Associates, a housing industry research firm, to increase their home price appreciation projection from 3.7% to 4.7%.
The post also touches on whether we need to worry that this activity and price appreciation will lead to another housing crash. The short answer, NO. The graph they provide shows the difference (take a look). While home prices are appreciating above normal, it is nowhere near the increases we saw leading up to 2008. For example, the graph shows that in 2004 home prices were appreciating at 12.5%. This is well above the 3.6% norm, and certainly cause for alarm.
That is just not the case in the current market. Many even believe that the strength of the housing market could help the overall economy. Read the post for yourself and the links KCM provides to this recent research. If you’ve been debating a real estate move in 2020, now may be the time to sit down with an agent to discuss your goals.