The pandemic has truly affected everyone’s lives. Whether you are the CEO of a Fortune 500 company or a small business owner, Covid-19 has shaped our lives in one way or another. One segment of the workforce that has seen drastic changes are those that previously commuted into the office in a metropolitan hub and who are now discovering the advantages of a remote working life. An IBM survey published in May 2020 showed that 54% of newly remote workers would like to continue working remotely after the pandemic subsides.
Oddly enough, because I write this blog, I get asked all the time by friends and colleagues what I think will happen to housing prices. It has become an even more repetitive ask in these abnormal economic times, as it applies to a wide swath of the population, including: homeowners, potential homeowners, real estate agents, mortgage professionals, economists, media pundits, those casually interested in the housing market, and so on. I do not have a crystal ball, and often the speculative answers vary depending on how the question is approached. However, I do know what will influence prices in either direction.
In this post, I’m going to educate you about what is going on in the economy. Most any economic indicator (GDP, New Home Sales, Jobless Claims, etc.) from Q1 and Q2 is going to be, in the words of Billie Eilish, “baaaaaaaaaaad.” Don’t reach for your mid-day cocktail yet, I have some good news for you.The market is already looking forward to Q3 and Q4 numbers while closely monitoring the pace at which states are opening back up and how citizens are responding. The positive news is that the amount of money being pumped into the economy through unemployment programs and the PPP will be enough stimulant to lead to better numbers in the back half of the year. Additionally, the Fed has done a phenomenal job rolling out the 2008 ready-made playbook and more since this crisis began. The circumstances surrounding this crisis—caused by a virus, and not from bad actors in the financial markets world—has allowed the Fed to act swiftly and effectively.Both Fed Chairman Powell and Secretary Mnuchin say they are ready with even more liquidity injections if needed. Fortunately, for mortgage rates, the volatility has died off, and that should give buyers a lot more confidence to lock their loans. The Fed will be careful not to say or do anything that has a chance of upsetting the apple cart for the foreseeable future. In fact, the Fed has ramped up the programs they already have in place to help areas of economic stress that have arisen and may arise going forward. For you as a potential home buyer or refinancer, it is amazing news that the Fed signaled that interest rates will be at zero until they are sure we are out of this economic overhang from the virus. As a result, it’s a great time to reach out to your mortgage professional and stay on top of exactly what is going on in the market. Whether or not we can win your business, we are happy to be an amazing resource in your home buying journey.
We are well into 2018 and new trends are emerging that will continue to shape the real estate market for the upcoming year. In order to help real estate professionals and homebuyers succeed in the New Year, realtor.com’s data team combed through countless reports and analytics to help forecast the top real estate trends for 2018. Here is what they found: