Housing Finishes 2020 with a THUD! Nope!!

Filed under: Market Comentary

It’s the last Wednesday in 2020! This year has been a mix of good and unusual circumstances.

Pending home sales came out this morning. The headline makes it sound like the year might be ending on a bad note, potentially predicting what might be coming. Here’s the headline: Pending Home Sales Down 2.6% Month Over Month.

Trends in Recent Years

I went back and looked at the past 6 years, and this trend is common every year. Of course, there are less pending home sales in December – how many people are looking for homes during the holiday season? The market is going to naturally drop; it’s surprising that we only dropped 2.6% compared to November.

The other notable point isn’t in the headline: the year-over-year for this month, is actually up more than 16%. That’s more telling regarding what is happening in the market. Think about our low inventory and the fact that we are up year-over-year, it’s pretty impressive that this market is staying so resilient.

Current Real Estate Factors

Low rates are definitely playing a role. Not taking advantage of these low interest rates is insane! I had a conversation with someone yesterday who asked the right question: why wouldn’t I take this money?! It’s a no-brainer to lock in a low interest rate if you are thinking about buying a home.

At some point, affordability will start to get pinched if prices continue to increase. We just haven’t hit that spot yet.

Housing is Looking Good

No, housing for 2020 isn’t ending with a big thud. This trend is very typical. If anything, the month-over-month decrease is actually lower than usual, and we’re up year-over-year.

That’s good news in the market and we are glad to see that things are holding strong.

Happy New Year

Have a safe, happy New Year! There is a lot of cheer about getting rid of this year. Remember to keep your mindset straight. A lot of what is going on is just a mindset shift away for turning things around for you.

I’m always here to talk about mortgages – reach out anytime if you have questions about your financial situation.

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