Before the pandemic Twin Cities 2020 real estate showings were 5.0% ahead of last year. This past week showings came back after its precipitous drop when the stay-at-home orders hit… back to 6.2% ahead of the same time last year.
The drop off you see above is for the Memorial Day holiday, as is the drop you see in the stats below. My experience in the field is that it seems like homes are accepting offers as soon as they hit the market… I wouldn’t be surprised to see pending sales spiking up in the next couple weeks as they get through inspections and move on to pending sales.
With Freddie Mac reporting that interest rates fell to 3.15%, the lowest level since Freddie started tracking rates in 1971, the only thing holding the market back continues to be a shortage of homes for sale.
If you are thinking of selling, buyers are waiting! Contact us, we can help!
from our blog at Keeping Matters Current
All eyes are on the American economy. As it goes, so does the world economy. With states beginning to reopen, the question becomes: which sectors of the economy will drive its recovery? There seems to be a growing consensus that the housing market is positioned to be that driving force, the tailwind that is necessary.
Some may question that assertion as they look back on the last recession in 2008 when housing was the anchor to the economy – holding it back from sailing forward. But even then, the overall economy did not begin to recover until the real estate market started to regain its strength. This time, the housing market was in great shape when the virus hit.
As Mark Fleming, Chief Economist of First American, recently explained:
“Many still bear scars from the Great Recession and may expect the housing market to follow a similar trajectory in response to the coronavirus outbreak. But, there are distinct differences that indicate the housing market may follow a much different path. While housing led the recession in 2008-2009, this time it may be poised to bring us out of it.”
Fleming is not the only economist who believes this. Last week, Dr. Frank Nothaft, Chief Economist for CoreLogic, (@DrFrankNothaft) tweeted:
“For the first 6 decades after WWII, the housing sector led the rest of the economy out of each recession. Expect it to do so this time as well.”
And, Robert Dietz, Chief Economist for the National Association of Home Builders, in an economic update last week explained:
“As the economy begins a recovery later in 2020, we expect housing to play a leading role. Housing enters this recession underbuilt, not overbuilt…Based on demographics and current vacancy rates, the U.S. may have a housing deficit of up to one million units.”
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
