February 2020 National Real Estate Market Update
It’s crazy how much the National Market Trends are so similar to what we are seeing here locally in Dupage, Kane, Will and Cook Counties. Hi Everyone It’s Dave Bulava with Keller Williams. There has been so much talk of a recession but now most experts are saying they don’t believe it will be in 2020, in Fact Goldman Sachs’ US Outlook reports “In contrast, our new recession model suggests just a 20% probability of a Recession” And according to George Ratiu, Senior Economist at Realtor.com he says “Housing remains a solid foundation for the U.S. economy going into 2020.” So our strong housing market is actually helping prevent a recession. And according to Fannie Mae, Freddie Mac, The Mortgage Bankers Association and National Association of Realtors, they are ALL projecting that MORE homes will be sold in 2020 than were sold in 2019. Also, these same entities ALL projecting mortgage interest rates to remain very low through the rest of the year ranging from 3.6 to 3.8%, this all has a positive impact on the housing market. The biggest issue that the housing market is expected to see is a shortage of inventory levels. In fact Realtor.com states “In 2020, we expect inventory to struggle to grow and could INSTEAD reach a historic low level.” We continue to see months of inventory go down nationally. Remember, when you have lower supply and a higher demand that’s when you see prices start to increase and experience bidding wars etc. We are seeing this right now right here locally in Dupage, Kane, Will and Cook Counties. The good news is that we have seen an uptick of new development that will offset some of this lower supply of inventory. Bottom line, we are in a very strong real estate market. Don’t be so hasty to listen to all the “Hype” about a recession, look at the Facts and what the Experts are projecting. As always, I’m here to help you and thank you for taking the time to watch my videos. Please remember to share this video with anyone who you think it may help. Make it a great home selling and buying day!