According to Zumper's National Rent Report (November 2020), overall, the national 1-bedroom median rent decreased 0.5% last month to $1225, while the 2-bedroom median decreased 0.4% to $1483. While all four major U.S. regions recorded notable year-over-year increases, only the Northeast achieved month-over-month gains in pending home sales transactions. Sales volumes overall are forecasted to remain higher than pre-pandemic levels throughout this year and next. Pending home sales experienced a minor decline in September after four consecutive months of contract activity growth, according to the National Association of Realtors®. And then they can just track whether things are improving or declining from that reference point. That gives potential home sellers hope, though it will take time for these low-interest rates to offset the spike in unemployment and general economic malaise. The mismatch between supply and demand is driving prices higher, but this isn't a housing bubble. In October, the nation’s median listing price per square foot also grew by 14.7% compared to last year, an acceleration from the 13.9% growth seen last month. With unusually high buyer interest this late in the homebuying season, buyers continue to move much faster than this time last year to beat out competition and lock in low mortgage rates. The exact figures, however, are less important than the explanation behind the expected drop. The housing market predictions were pointing out that all the housing indices would trend upward for the nation as a whole as well as in every state, including the top 100 metro areas. In the third quarter, the percent of homeowners and renters behind on their payments fell slightly from the prior quarter. In Michigan, the agency estimates wage and salary employment growth will fall by 10.2 percent in 2020 and increase 6.9 percent in 2021. Sellers returned to the market, as the decline in newly listed properties substantially improved and western and northeastern metros saw more newly listed homes than the same time the previous year. The home price appreciation rate has slowed so far but prices are still rising. This is an acceleration from the 11.1% yearly growth seen in September as the October median listing price sustained summer highs. The Federal Reserve Bank of New York's Center for Microeconomic Data released the September 2020 Survey of Consumer Expectations, which shows improvement in the labor market and spending expectations, as well as less pessimistic views about their own financial situations in the year ahead. The rental vacancy rate in the South was lower than the third quarter 2019 rate, while the rental vacancy rates for the Northeast, Midwest, and West were not statistically different from the third quarter 2019 rates. https://www.realtor.com/research/june-2020-data/ Hence, home price growth will flatten, with a forecasted increase of just 1.1 percent. While more sellers are comfortable entering the housing market compared to previous months, the lack of further improvement in newly listed properties signals that a return to normal conditions for the housing market is still just beyond reach at this time. Despite that, there is little sign so far that the housing market is about to subside. In the article, you'll find data that shows how the US housing market is recovering week after week from the blows of the pandemic. Even though the housing market likely won’t be the cause of the next recession, an economic downturn would still have an impact on the US real estate sector. It had crossed the January baseline for the first time since early August. With supply-constrained and demand boosted, house prices seem to rest on solid foundations in the pandemic. Although the demand has softened a bit as compared to previous weeks but is nowhere to close to a level where you can imagine the balance real estate market conditions. However, hot economies eventually cool and with that, hot housing markets move more towards balance. Let’s first look at the negative housing forecast for 2021 and its reasoning. Although growth in supply remains below the normal seasonal pace it continues to improve as buyers anxiously await more sellers to put fresh new homes for sale on the market. https://www.marketplace.org/2020/03/24/covid-19-nurses-doctors-licenses-states/ Qualifying income is derived from the monthly payment on the median-priced existing home, at the effective mortgage interest rate. In a research report in which Zillow surveyed 100 real estate experts and economists about their predictions for the housing market, it disclosed that almost 50% of all survey respondents said the following recession will initiate in 2020, with the first quarter of the year referred to the most as to when the recession will start. It is interesting to see that the rental vacancy rate of 6.4 percent was 0.4 percentage points lower than the rate in the third quarter of 2019 (6.8 percent) and 0.7 percentage points higher than the rate in the second quarter of 2020 (5.7 percent). Home sales are recovering from the setback of the coronavirus led crisis with fall becoming the peak homebuying season. While many economists predict that home prices will continue to rise, much will depend on the economy’s ability to bounce back from the pandemic. In either case, the overall outlook points to declining rent growth in the short term followed by a gradual period of recovery. To afford a typical mortgage payment, a given family needs to spend no more than 25% of income on its mortgage payment (for a 30-year fixed-rate mortgage with a 20% down payment). This will be the key factor driving housing demand as state economies steadily reopen. This is why the median home price was rising in 2019. These include single-family homes, townhomes, condominiums, and co-ops. For the US, at the 5% down-payment threshold, the qualifying income amount for the second quarter of 2020 was $58,613. https://www.realtor.com/research/2020-housing-market-predictions-covid-19-update/ Realtor.com's latest national housing report shows that it is an unusually active buying season where homes sold more quickly in October than September. Avoid These 5 Red Flags. "The 2021 housing market will be much more 'normal' than the wild swings we saw in 2020. Fannie Mae predicts 40% more mortgage refinances in 2020 than 2019. However, that may translate to higher costs and delays in receiving building materials, due to high demand, low supply, and 20 percent tariffs on Canadian supply. The 2-bedroom median dropped 2.9% to $3690. Applications for home purchase loans improved slightly on the week, halting a streak of four straight weekly declines. An important step in this direction was the announcement of the payment deferral option for borrowers. New home sales are expected to be higher this year than last, and annual existing-home sales are now projected to be up – even after missing the spring buying season due to the pandemic lockdown. Home sales, which had gone on a declining spree due to social distancing & economic unpredictability, have now surpassed the pre-COVID levels.
2020 michigan housing market forecast 2021