What Could a Recession Mean for the Housing Market?
Whether you are a home buyer or a home seller, here’s what a possible recession might mean for your housing decisions.
Marty Remo- RE/MAX Benchmark Realty Group 845-266-7050 #Extraordinary
What Are Experts Saying about Home Prices?
Last week, a very well-respected real estate analytics firm surprised many with their home price projection for the next twelve months. CoreLogic, in their latest Home Price Index said:
“The economic downturn that started in March 2020 is predicted to cause a 6.6% drop in the HPI by May 2021, which would be the first decrease in annual home prices in over 9 years.”
The forecast was surprising as it was strikingly different than any other projection by major analysts. Six of the other eight forecasts call for appreciation, and the two who project depreciation indicate it will be one percent or less.
Here is a graph showing all of the projections:
There’s a simple formula to determine the future price of any item: calculate the supply of that item in ratio to the demand for that item. In housing right now, demand far exceeds supply. Last week mortgage applications to buy a home were 33% higher than they were at the same time last year. The available inventory of homes for sale is 31% lower than it was last year. Normally, these numbers should call for homes to continue to appreciate.
Bottom Line
Because of the uncertainty with the pandemic, any economic prediction is extremely difficult. However, looking at the limited supply of homes for sale and the tremendous demand for housing, it is difficult to disagree with the majority of analysts who are calling for price appreciation.
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Almost 25 Years Later!
Great guy. Great team. Used them repeatedly! -The Eckmans
'It's not every day that I have the privilege of working with friends/clients again. I actually sold them their home in Washingtonville 24 years and 9 months ago. I sold this home again, as well as, a beautiful townhouse...as they begin the next chapter of their lives that will include no yard work! Best of luck!' Marty
Marty is an outstanding realtor
If you need an amazing realtor, you have found one! Marty Remo Helped my husband and I sell our home Marty is an outstanding realtor to partner with. His knowledge of the market and how to best market your property is second to none. Marty explained the entire process to us and held our hands throughout the process. We trusted his judgement and advice and our property went into contract quickly. Marty is very responsive to emails, calls, and texts so I never felt ignored or uninformed about anything. He is high energy and will make sure that everything runs smoothly. I would highly recommend him to anyone. Thanks Marty!
Put your home in Marty's hands
Finding the The Remo Team was just what I needed to make selling my home as painless as possible. Working with Marty was truly a pleasure. He always went the extra mile.. Literally! Selling my second home, which was over 60 miles from where I currently reside, came with many challenges.. All of which Marty was fully equipped and ready to handle. His presentation of the home was stunning, right down to the professional walk through video, which I now hold as a sentimental keepsake. I would highly recommend working with the The Remo Team for all of your real estate needs. Put your home in Marty's hands and leave your worries behind!