home
about
Why Buyer's Agents?Meet the EBR TeamTestimonialsVideo TestimonialsHome Buyer ResourcesReview Us
relocationneighborhoods
listings
How to use our MLS Listing SystemView All MLS ListingsBasic MLS SearchAdvanced MLS SearchMap Based MLS SearchAddress Based MLS SearchCreate AccountLoginMy Account
newscontact
market conditions

Real Estate Is Soaring, But Not Like 2008

March 4, 2020
market conditions

Real Estate Is Soaring, But Not Like 2008

March 4, 2020
Homenewsmarket conditions
Post
Homenewsmarket conditions
Post

Real Estate Is Soaring, But Not Like 2008

Real Estate Is Soaring, But Not Like 2008 | Simplifying The Market

Unlike last year, the residential real estate market kicked off 2020 with a bang! In their latest Monthly Mortgage Monitor, Black Knight proclaimed:

“The housing market is heating entering 2020 and recent rate declines could continue that trend, a sharp contrast to the strong cooling that was seen at this same time last year.”

Zillow revealed they’re also seeing a robust beginning to the year. Jeff Tucker, Zillow Economist, said:

“Our first look at 2020 data suggests that we could see the most competitive home shopping season in years, as buyers are already competing over…homes for sale.”

Buying demand is very strong. The latest Showing Index from ShowingTime reported a 20.2% year-over-year increase in purchaser traffic across the country, the sixth consecutive month of nationwide growth, and the largest increase in the history of the index.

The even better news is that buyers are not just looking. The latest Existing Home Sales Report from the National Association of Realtors (NAR) showed that closed sales increased 9.6% from a year ago.

This increase in overall activity has caused Zelman & Associates to increase their projection for home price appreciation in 2020 from 3.7% to 4.7%.

Are we headed for another housing crash like we had last decade?

Whenever price appreciation begins to accelerate, the fear of the last housing boom and bust creeps into the minds of the American population. The pain felt during the last housing crash scarred us deeply, and understandably so. The crash led us into the Great Recession of 2008.

If we take a closer look, however, we can see the current situation is nothing like it was in the last decade. As an example, let’s look at price appreciation for the six years prior to the last boom (2006) and compare it to the last six years:Real Estate Is Soaring, But Not Like 2008 | Simplifying The MarketThere’s a stark difference between these two periods of time. Normal appreciation is 3.6%, so while current appreciation is higher than the historic norm, it’s certainly not accelerating beyond control as it did leading up to the housing crash.

Today, the strength of the housing market is actually helping prevent a setback in the overall economy. In a recent post, Odeta Kushi, Deputy Chief Economist for First American explained:

“While the housing crisis is still fresh on the minds of many, and was the catalyst of the Great Recession, the U.S. housing market has weathered all other recessions since 1980. With the exception of the Great Recession, house price appreciation hardly skipped a beat and year-over-year existing-home sales growth barely declined in all the other previous recessions in the last 40 years…In 2020, we argue the housing market is more likely poised to help stave off recession than fall victim to it.”

Bottom Line

The year has started off very nicely for the residential housing market. If you’re thinking of buying or selling, now may be the time to get together to discuss your options.

No items found.
You may also download the PDF here.
see other posts by Category

Home Buyers Resources

why buyer's agents

home ownership

local news

market conditions

Buy vs Rent

Neighborhoods

Financing
see other posts by tag
#
why buyer's agents
#
HOA's
#
home inspection
#
home safety
#
home prices
#
schools
#
credit
#
scams
#
podcast
#
building equity
#
relocating buyers
#
move up buyers
#
first time home buyers
#
moving
#
interest rates
#
Inspiration
other Featured news posts
Lilia Macias-Moriarity Joins EBR Savannah as an Exclusive Buyer's Agent
 in 
local news
Andi DeFelice, Broker at EBRSavannah quoted in recent 14th Street Capital Article
 in 
Just What is an "Exclusive Buyer's Agent" and Why Would I Want One?
 in 
why buyer's agents
A great article by Bill Gassett @ RISMedia's House Calls entitled "Top 10 Reasons to Hire a Buyer’s Agent"
 in 
why buyer's agents
Advice and Tips on using a VA loan, obtaining seller credits and living in Savannah, Georgia
 in 
home ownership
The Problem With Real Estate Agents
 in 
why buyer's agents
Why Use an Exclusive Buyer Agent?
 in 
why buyer's agents
Like This? Please Share!
Homeaboutrelocationneighborhoodslistingsreview us912-454-2317
contact us
Website by BMG
© 2022 EBR Savannah
GA License H-17661
Privacy