Wednesday, June 17, 2020 / by Vanessa Saunders
From Vanessa Saunders, MBA, MIMC , Broker Owner, Global Property Systems Real Estate.
Home sellers and buyers should keep an eye on several trends in the real estate market that were recently outlined by presenters at Inman's June Virtual Connect Now conference. The event, held virtually June 2-4, 2020, featured economists and real estate experts, who explained some of the trends that will help you understand what's happening in your market.
1. Getting the most current pricing trends
Supply and demand are always the best predictors of future price directions, but people focus incorrectly on closing data, which relies on selling prices from closings that may be 30 to 90 days old. Instead, sellers and buyers should seek out the number of listings coming on the market (the sell-side), and pending sales (the buy-side). Considering these two metrics offers a much more current snapshot of today's market direction. Buyers and sellers can access this information from their Realtor, who has this data through their local Multiple Listing Service.
2. Suburbs are back
McMansions are making a comeback as more people need multi-generational households or just more space to accommodate working from home. People are moving out of downtown residences, in favor of convenient-to-walk areas in near-by suburbs, small cities and rural areas. Likewise, a sudden interest in second homes has popped up in for properties in a two to four-hour travel radius from major metropolitan areas.
3. Apartments are out - houses are in
Before the Corona Virus outbreak, many Millennials saw little value in owning a home. They preferred spending money on travel, enjoying other experience-type uses of money instead. The pandemic has changed that kind of thinking in many millennial households. According to Inman, "Home ownership has now become a key priority among Millennials."
4. Rightsizing turned upside down
Usually used to describe moving from a larger property into a smaller one, the idea was that less is more. Today, rightsizing can go either way, moving into a smaller or larger residence, as the individual buyer makes better use of the space. "It’s about the quality of the space you need to meet your needs — not the quantity, the Inman report summarized.”
5. Housing prices and interest rates hold steady
Home prices have been relatively stable, even in the face of pandemic shutdown and lack of inventory (homes for sale). Economists predict any decline will be less than 2% overall. Interest rates, predicted to hit 2.5% this year are already there.
The signs still favor sellers, but seller's markets don't come around often, and when the do, they don't last long. Home owners considering a move should act quickly before the market turns again.
Interested in buying or selling a home the Mid-Hudson Valley? Get a head start and search all seven Mid-Hudson Valley counties (Rockland, Dutchess, Orange, Putnam, Sullivan, Ulster and Westchester) for homes on the market by using our free search site at www.gpshouse.com.