A DEEPER LOOK INTO THE US HOUSING MARKETS. WHERE YOUR MONEY SHOULD BE AT!
T
he 2020 housing market has been very interesting. As of now, the market remains a hot seller’s market, with annual price growth hitting record highs as inventory continues to plunge. All through the pandemic-induced housing market, homebuyers have been looking for hints of a slowdown in the real estate market that has been a beehive of activities since the economic recovery began. As of now, there is a dire need for new home supply to boost the inventory and slowdown the skyrocketing home prices. Asking prices for homes across the country continue to soar higher in double digits, with the first week of November marking the 13th consecutive week of a doubledigit price increase this year. This upward trend of home values shows the strength of the housing market is as it was during the housing bubble. The US housing market’s strength is majorly attributed to the current all-time low mortgage rates, along with low inventory accompanied by high demand. Home Values. According to Zillow, seasonally adjusted home values are expected to increase by 2.9% between September and the end of 2020 and incline 7% in the 12 months ending in September 2021. According to Yun, NAR’s chief economist, home prices will likely appreciate 4% in 2020 before moderating to 3% in 2021 as more new supply reaches the market. As of November 7, weekly housing market trends revealed that median listing prices are still growing at 12.9% from last year, marking the 13th consecutive week of double-digit growth in asking prices. The value of a typical home for sale remained unchanged at $350,000.
HOUSING SUPPLY
In the week ending on November 7, new properties listed for sale dropped 12%, representing the second week of huge 20
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THE POWER IS NOW MAGAZINE | DECEMBER 2020
