Before we look where home values are going, let us look at where they have…
Raleigh real estate and real estate on the aggregate has exceeded where it was before the pandemic. Many thought it was not possible but it happened, housing has experienced a V-shaped recovery. Kevin Martini is the Chief Mortgage Strategist with the Martini Mortgage Group at Benchmark Mortgage and the video below is video edition of the October 2020Real Estate Update (a.k.a. Things you need to know about the real estate Market).
The truth about the real estate market is obtained by layering facts upon facts.
5 Key Housing Metrics
There are 5 key Mmtric to look at when considering the health of the real estate market in Raleigh or any marker for that matter are: showings, purchase applications, pending transactions, existing home sales and New Home Sales. All of these 5 key metrics are up year over year.
The consumer drives not just the economy but also the consumer drives the real estate market. There is no question that once the pandemic reared its head, consumer spending took a major hit. In April 2020 consumer spending was down 31.7 percent however every month since, even though consumer spending is down as compared to January 1, 2020, every month it is getting better.
To spend you have to have money…to have money most of us need to have a job. In April 2020 the Bureau of Labor Statistic dented taht unemployment was 14.7%. The September 2020 reports showed 7.9% was unemployed. Granted, the September reading was higher than it was before the pandemic but it is materially better than April, May, June, July or August of 2020. Employment is not at a level that we want but every day of every month it is getting better.
This is NOT 2008
During the great recession, on the aggregate, homes were worth less than what many people owed on them. This is not the case today. The great recession of and the Recession of 2020 are not a like. The Great Recession was because of housing, specifically lending practices that led to a housing crisis. The recession today is NOT like the great recession. 4 out of 10 people own their home free and clear. Over 16 percent have over 60% equity in their home. Recession does not mean housing crisis!
Projections On Future Home Prices
Zelman, Fannie Mae, National Association of Realtors, Zillow, Mortgage Bankers Association, Freddie Mac, CoreLogic and a Reuters’ poll all predict that home values are going up.
This month the Martini Mortgage Group at Benchmark Mortgage launched My Community. It is designed to provide breaking news that you need to know if you own real estate. It was also designed to provide tactical and practical informatio, along with breaking news, to those that work in the real estate arena. If you are a homeowner or wnat to be a homeowner one day, simply text ‘HOME’ to 984-300-3677. If you work as a real estate professional simply text ‘REALTOR’ to 984-300-3677.
The updates are free but the information is priceless.