Will the Housing Market Turn Around This Year?

75% of sellers will relist after the lock-down and buyers will use declining interest rates to move to the suburbs for homes with more space offices and bigger yards

People are wondering whether they should buy or sell their home in 2020. Understandably, some home owners are delaying or changing their plans.  Everyone is wondering when the market will change and when the economy will turn around.  This spring in their 2020 NAR Flash Survey: Economic Pulse, the National Association of Realtors (NAR) began tracking the behavioral changes of home buyers and sellers . In reaction to their most recent survey, Lawrence Yun, Chief Economist at NAR, noted the beginnings of a change in the market:

“After a pause, home sellers are gearing up to list their properties with the reopening of the economy…Plenty of buyers also appear ready to take advantage of record-low mortgage rates and the stability that comes with these locked-in monthly payments into future years.”

What does the survey indicate about sellers?

Will the Housing Market Turn Around This Year? | Simplifying The MarketSellers are positioning themselves to make moves this year. More than 3 in 4 potential sellers are preparing to sell their homes once stay-at-home orders are lifted and they feel more confident, which means more homes will start to be available for interested buyers.  Just this week, Zillow also reported an uptick in listings, which is great news for the health of the market:

“The number of new for-sale listings overall has shown improvement, up 5.9% last week from the previous week. New listings of the most-expensive homes…are now seeing the biggest resurgence, up 8%. The uptick is likely a sign sellers are feeling more confident because of improving buyer demand, as newly pending sales have also jumped up during the same period.” 

What does the survey note about buyers?

The recent pandemic has clearly impacted buyer preferences, showing:

  • 5% of the respondents said buyers are shifting their focus from urban to suburban areas.
  • 1 in 8 Realtors report changes in desired home features, with home offices, bigger yards, and more space for their families becoming increasingly important.
  • Only 17% said buyers stopped looking due to concerns about their employment or loss of a job.

As we’ve mentioned before, buyer demand is strong right now, and many are simply waiting for more inventory to become available so they can make a move, especially as the country begins to reopen.

Bottom Line

If you’re thinking about putting your house on the market, call James Bean at (973) 987-7065!

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