When we last delivered our “Rate Update,” the environment was ultra-low rates. Fast
Its Getting Better All The Time Getting Better By The Beatles
Dated: November 25 2019
That famous line describes the current wonderful backdrop for housing and the overall U.S. economy. Many are wondering what lies ahead for housing as we enter 2020.
There are many reasons why the U.S. housing sector should do well for the foreseeable future, but here's three main reasons for the bright outlook:
Housing Starts are improving. This is especially true for single-family homes, which have risen for five consecutive months. This trend suggests anticipated buying demand.
The labor market remains strong. Rates don't buy homes, jobs do. 50+ year low unemployment at 3.6%, coupled with rising wages makes for a wonderful housing backdrop.
Low home loan rates for longer than most expect. Rates don't buy homes, but they definitely help more people participate in buying a home. With inflation running beneath the Fed target of 2.00% for the foreseeable future, there should be no upward pressure on home loan rates.
Bottom line: there is no recession in sight. The backdrop for housing is more of a Goldilocks scenario and makes for a wonderful time to purchase a home.
If you or someone you know has questions about selling or buying a home, give me a call. I'd be happy to help.
Avo Derbalian became Owner/Salesperson of a real estate company in early 2016 after being a Realtor® for a year and a half, providing services all over Bergen County and Passaic County. Since then, ....