You understand what? They are expected to be. It's not a news story! Anytime I hear sales data in a format that compares one month of sales to the previous month, I get a little suspicious and you must too - what does a real estate broker do. A much better measure is to take a look at present sales in a month vs the exact same month one year previously since it represents the real estate sales cycle.
Instead, We would compare June with the previous June. Or the last 3 months with one year to one year and 3 months back. This provides us better information to assess what's actually occurring. Nobody needs to be shocked that November sales are lower than October sales or that January is slower than December.
I would once again suggest you consult a local property specialist to see what's actually going on. how much do real estate agents make per sale. Let me provide you an example: The Atlanta real estate market sales cycle looks like what you see here in this graph. Slow at the beginning of the year and gets in March through June-July and decreases through November and chooses up in December and slows in January.
It does this every year. Imagine if I tried to inform you the timeshare presentations market was going to crash due to the fact that sales were below July to August to September. It's missing out on the needed context that it does this every year and it is expected and it does not mean there is a problem or perhaps a modification in what is expected in the market! With that in mind, here's some actual property data that reveals there's no pattern of unfavorable sales on statistics that really matter here in the Atlanta property market: There were 7,201 sold homes in December 2020.
That's really a 10% increase in sales year over year and absolutely not a downturn. Sales are a lagging indication therefore to look ahead we can use the leading sign of pending sales. December 2020 is the last complete month of data and we see that in December of 2020 there were 5,650 pending sales and in 2019 there were 4,638.
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8% boost in pending sales compared to what took place the previous year so it doesn't appear like we are heading for that downturn we became aware of from leading signs either. Various areas run in different cycles. Warmer environments might have more sales in the winter months compared to chillier climates.
Rates of interest will have to increase at some time as the economy opens up and we begin to see real economic development. It's going to take place eventually for sure. Freddie Mac suggests it will not occur too soon though saying: "This low home mortgage interest rate environment is predicted to continue through 2021 and 2022 as the Federal Reserve has actually voted to keep the interest rates anchored near absolutely no for a longer period of time if required up until the economy rebounds.
8% in the fourth quarter of 2020, it is forecasted to typical around 2. 9% through the end of 2021." It's real that ultimately, more inventory will enter the market as well and that will assist bring a little better balance to the market however it's going to take a lot of inventory for that to happen.
It's an inventory crisis and it's too low. It's so low that inventory could triple and we would still be in a seller's market here in Atlanta and as long as rates do not double at the exact same time it's difficult to think of a scenario that would see rates decline not to mention crash.
Just ask any purchaser battling for a house right now. Perhaps the recommendations regarding what we hear on the news is this: when we seek realty information, the news media can't be your only source. Especially on the planet we reside in today where headings frequently don't even match the stories and those headings are typically created simply for clickbait and to sell ads.
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Even when a newspaper article interviews a specialist on a news show, they have actually normally looked for an "specialist" that currently fits the narrative for their "news" story - what is cap rate real estate. With that in mind, as we move into the new year with the election behind us, the vaccine being dispersed, and the economy poised to rebound, it's my opinion that there will be no housing crash in 2021 and probably not even further out into the future.
In the midst of a raving COVID-19 pandemic, with countless Americans still out of work and dealing with the possibility of eviction and foreclosure, the United States is experiencing a real estate boom the likes of which it hasn't seen in 15 years. Home costs are rising practically all over. From Augusta, Maine, to Phoenix and from Sarasota, Florida, to Aberdeen, Washington, rates are up by double digits.
Supplies of existing houses have dwindled far listed below the six-month level considered regular. Real estate agents are receiving numerous deals. Home builders can't stay up to date with need and turning is back. Talk of a real estate bubble is now typical amongst analysts including those at Swiss banking giant UBS, who back up their claims with charts revealing how home rates are overtaking both incomes and leas.
The upshot: Residence are out of grab a growing number of purchasers every year, the analysts argue. But unlike the property boom that led to the Terrific Economic downturn, this nationwide price spike is not being fueled by a wholesale collapse in lender ethics. There aren't any low-doc or no-doc loans to be had and customers are needing to do a lot more than fog a mirror to get funding.
" We need 1. 62 million units a year to timeshare orlando equal organic demand, but we produce significantly less. We have to do with 370,000 systems brief each year." Marco Santarelli, founder and CEO, of Norada Realty Investments. CourtesySantarelli included that the supply imbalance will only get worse as more than 140 million millennials and members of Gen Z move into rentals and starter houses in the years ahead.
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" That's the greatest rate in over 110 years. These individuals need to go someplace and that's why I'm so bullish about realty over https://postheaven.net/mualleit2m/assist-buyers-find-a-mortgage-loan-provider-7 the long term." (what does mls stand for in real estate). However these healthy principles do not suggest there aren't worrying distortions in the market. With the Federal Reserve continuing to purchase Treasury bonds and other securities under its quantitative reducing program, interest rates are being held artificially low as dollars are being pumped into the economy.
Till the Federal Reserve halts its bond buying and rates of interest start to rise again, genuine estate rates will continue to climb, states Robert Goldman, a realty representative with Michael Saunders & Co. in Sarasota. And no modification in policy is anticipated any time quickly." The Fed will keep purchasing bonds far into the future despite what might be a growing economy in 2021 and 2022," Goldman said in his regular monthly newsletter." We had a 10.