WHERE DOES THE HOUSING MARKET GO FROM HERE?

The first six months of 2020 has taken the housing market into some uncharted waters and has seen an uptick in the use of technology to provide solutions to social distancing.  The question remains where does the housing market go from here and what will the market look like at the close of the year?

Five significant data points have emerged during these first six months: 1) mortgage rates are in search of a bottom; 2) home prices moving towards record highs; 3) home buyers looking for the "deal"; 4) a shrinking inventory of homes for sale; and 5) homeowners weighing their options - sell or refinance.

The corona virus has brought a new dimension to the housing market as more regions of the country are experiencing new guidelines for social distancing and more families are confronted with re-purposing their homes.  Rooms are now multi-functional serving as office space, home gyms, and school classrooms.  In addition, regional unemployment remains a concern for first-time buyers and those with secured mortgages as they look for ways to meet these financial obligations.

Three greatest concerns moving forward in the second half of 2020 are:
 1. The health crisis caused by corona virus
 2. The shortage of houses and the need to build more homes to meet the growing demand
 3. The expiring of the emergency fiscal policies from the CARES Act at the end of July and its impact on both the rental and owner-occupied market.

The turbulence created by this virus and its far- reaching tentacles into the very fiber of our society offers both challenges and opportunities.  We are living in what can be best describes as "interesting times."  When the housing market fully emerges from both the challenges and opportunities of these days, we need to be at the forefront leading the way into a new housing era.