CNBC’s Diana Olick breaks down the housing market for 2020 along with opinions from several of the Fast Money traders. Here’s what they say to watch in the housing market for 2020: 1) A shortage of housing – especially at the lower end; 2) Mortgage rates will stay low; and 3) Demand will stay high for new construction. Click here to watch on CNBC.
Author: Brad Beckett
Brad Beckett
Director of Education & Outreach, National Real Estate Investors Association
The National Association of Realtors is reporting that pending home sales were up 1.2% in November. The NAR’s Pending Home Sales Index (a forward-looking indicator based on contract signings) increased to 108.5 in November, up 1.2% from October. In addition, they reported that year-over-year contract signings were up 7.4%. However, the low inventory situation still lurks… “Despite the insufficient level of inventory, pending home contracts still increased in November,” said Lawrence Yun, NAR’s chief economist, noting that housing inventory has been in decline for six straight months dating back to June 2019. “The favorable conditions are expected throughout 2020 as…
The Wall Street Journal (reposted on Realtor.com) is reporting that some larger U.S. cities are promising tenants the right to an attorney in eviction cases, which the article points out is a “costly and logistically daunting initiative.” However, the political climate in America’s larger cities tends to be more friendly to the desires of housing advocates who claim this is a necessary response to rising rents and affordable housing concerns. Indeed… “Landlords have said that the significant funds needed to provide representation to lower-income residents could be better spent offering temporary housing subsidies to keep people in their homes.” “While…
What are the top real estate markets for 2020? The folks over at Realtor.com recently put together their forecast for 2020 and they say these are the places where their paychecks will go the farthest and people can enjoy a more laid-back pace of life. Interestingly, they are mostly medium-size metros in the South and non-coastal West. Indeed…. “The cities that we expect to do best in 2020 are not necessarily big, fancy, coastal cities, but secondary markets where the job market is still pretty good but housing is affordable,” says Danielle Hale, chief economist of realtor.com. Realtor.com’s top 10…
The final weekend of the year is now upon us. We hope you had a great 2019 and wish you nothing but the best for whatever 2020 has in store! Today’s infographic from WalletHub shares over 5o New Years Facts – which are perfect to spark a conversation or keep one going while you’re waiting to ring in 2020! Happy Friday and Happy New Year!!! Source: WalletHub Hat tip to WalletHub.com.
A recent story in the Wall Street Journal (reposted on Realtor.com) explored about how some California homeowners recently found out their insurers wouldn’t renew their fire-protection policies. They reported that, in response, California announced a one-year moratorium forbidding insurers from dropping customers who live in or adjacent to ZIP Codes affected by this Fall’s wildfires. In addition, the California Department of Insurance said that over the past four years, insurers have declined to renew policies for 350k California homeowners who live in areas at high risk for wildfires. They say the problem isn’t just limited to California and that homeowners…
According to recent report from Zillow, renters spent a cumulative of $4.5 trillion on rent during the 2010s. In fact, they point out that in 2019, renters spent more than $512 billion on housing – the most of any year in this decade. Not surprising, metro New York renters spent the most in 2019 and throughout the decade, followed by Los Angeles and San Francisco. “While the total amount of rent paid has increased each year this decade, that trend is by no means immutable,” said Zillow Group Economist Joshua Clark. “With rental appreciation expected to decrease in the coming…
One of the key drivers of a home’s sale price is the quality of the local school system. Interestingly, recent analysis from the National Association of Realtors illustrates the positive relationship between public school enrollment and rising house prices. They say that over the last 7 years, counties with increased public school enrollment experienced higher price appreciation, than those that did not. The graph below shows the positive relationship between public school enrollment and housing prices. Indeed… “Across the country, hallways and classrooms are full of activity. More than three-fourths of the school-aged population, 48.2 million students, were enrolled in…
According to EllieMae’s latest Origination Insight Report, interest rates rose for the first time in 2019, increasing to 3.97%, up from 3.94% in October. In addition, the percentage of adjustable rate mortgages also increased for the first time in 2019, rising from 5.0% in October to 5.3% in November. The percentage of refinances dropped back below 50%, falling from 51% in October to 49% in November. “Interest rates rose for the first time in 2019, and as expected we are seeing the percentage of adjustable rate mortgages rise and the percentage of refinances taper off,” said Jonathan Corr, President and…
Just before slipping (slithering?) out of town for their annual Christmas break, Congress passed (and subsequently signed by the President) the $1.4 trillion Further Consolidated Appropriations Act that will fund the federal government for the rest of FY 2020. However, sneakily tucked into that measure was something that will cause investors to take notice: the SECURE Act (Setting Every Community Up for Retirement Enhancement). The bill had already passed the House back in April, 2019 but had been languishing in the Senate until it was amended into this fast-tracked funding bill. National REIA partner Equity Trust pointed out that “the…
